The overwhelming majority of fundsters' firms are already using generative artificial intelligence to help with sales, marketing, and client service already or plan to do so, according to new research from the folks at a consulting ally to fund firms. Yet fundsters worry about gen AI, too.

Alexander "Alex" Ellwanger Fues Research Network Senior Research Analyst

Alex Ellwanger, senior research analyst at Fuse Research Network, revealed yesterday that, per forthcoming Fuse research, about 44 percent of asset managers already use gen AI for the aforementioned purposes, while 30 percent plan to do so. Yet Fuse's findings also highlights' fundsters AI worries.

The most common concern that fundsters have about gen AI, Ellwanger reveals, is worries about accuracy or "hallucinations" (where gen AI makes up information). That worry is cited by 78 percent of fundsters. Other common concerns include: "lack of established best practices" (cited by 48 percent of fundsters); lack of user trust (41 percent); and integration problems with internal data and systems (41 percent).

Ellwanger argues that the trust, best practices, and accuracy issues "can be addressed with internal procedures."

"The hallucination problem is improving with new versions of LLMs [large language models]," Ellwanger writes to MFWire.

"The evolving nature of Gen AI necessitates that asset managers develop robust internal procedures to mitigate operational inefficiencies and potential legal risks. Over time, firms are moving forward with pilot programs and AI-use tests, ultimately building up experience and associated best practices," Ellwanger adds. "Lack of trust among end users is a legitimate concern, but that can be improved with time and experience." 

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