Man Group Analyzes AI Adoption in Asset Management

Asset management firm Man Group PLC has published an analysis of the adoption of artificial intelligence, specifically generative AI, within the asset management sector. The company draws parallels between the current AI advancement and the slow integration of electric light in the early 20th century, noting that transformative technologies require time for full implementation.

Man Group's subsidiary, Man AHL, has implemented generative AI in several ways to increase the productivity of its quantitative analysts. While AI has not yet replaced researchers or portfolio managers, it has boosted efficiency, allowing analysts to dedicate more time to alpha generation. The firm reports generative AI assisting with coding, data augmentation, feature engineering, and portfolio construction.

A key application involves an AI coding assistant that accelerates prototype development and research output by generating code from natural language prompts. A challenge lies in integrating AI with the company's internal, proprietary code libraries, but custom chatbot solutions are being developed.

Man Group states that over 70% of its employees are already utilizing generative AI. The company anticipates generative AI will scale more rapidly than the electric light did historically, potentially freeing up significant resources and improving daily workflows.