The Middle East region has witnessed a 13 percent surge in Assets under Management (AuM), increasing from $2 trillion in 2022 to $2.3 trillion in 2023, according to a new report by The Boston Consulting Group (BCG). The report highlights the pivotal role of the Middle Eastern asset management sector in the global asset management landscape and its significant contribution to industry growth. BCG’s latest report, “AI and the Next Wave of Transformation,” explores how artificial intelligence is reshaping the asset management industry.
Lukasz Rey, Managing Director & Partner and Middle East Head of Financial Institutions at BCG, emphasizes the importance of embracing artificial intelligence in the asset management sector to maintain competitiveness. The report reveals that industry leaders believe that a shift towards AI-driven management is crucial. Investing in AI-driven productivity, personalized product offerings, and the expansive potential of private markets can help asset managers navigate the challenges they face and spearhead innovative, scalable solutions.
The report outlines three major themes that should be a priority for asset managers in the years ahead: productivity, personalisation, and private markets. AI can enhance productivity by automating routine tasks and complex processes, improve personalisation by tailoring investment products and interactions to individual client profiles, and transform deal sourcing and due diligence processes in private markets to identify investment opportunities faster and increase returns.
Middle Eastern countries have made efforts to position themselves as leaders in AI preparedness, but more can be done to recognize the potential benefits of early adoption and innovation. By integrating AI into their economic frameworks, these countries can work towards significant workflow transformations and enhance the synergy between AI-driven solutions and human creativity. Asset management firms in the Middle East that effectively integrate these technologies can enhance efficiency, personalize client experiences, and capitalize on new opportunities.
Overall, integrating AI into asset management operations within the framework of productivity, personalisation, and private markets enables firms to enhance efficiency and capitalize on new opportunities. By investing in AI-driven solutions, asset managers can stay competitive in the industry and contribute to the Middle East’s evolving status as an AI innovation and implementation center.
