Investment Firms’ AI Adoption Hindered by Lack of Standards, CFA Institute Finds

A recent survey found that investment professionals agree AI standards are needed before they utilize the technology.

There is “widespread agreement” among investment professionals that standards for using artificial intelligence in the investment industry are needed and that the current lack of standard is hindering the adoption of AI technologies in investing, according to a survey conducted by the CFA Institute, which awards the Chartered Financial Analyst designation.

The survey, which took place in February, polled 200 representatives of investment firms with assets under management ranging from about $5 billion to about $500 billion.

“Increasing accessibility to large language models is rapidly adding to the pace of the AI-led revolution of the investment industry,” said CFA President and CEO Margaret Franklin in a statement. However, she continued, “the absence of standards and concerns around data privacy may be slowing down AI adoption.”

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According to the survey results, 85% of investment industry representatives polled said there is a need for industry-wide standards and ethical guidelines for AI and generative AI—AI that can create content such as video, images, audio or text. Close to the same share, 82%, said that until such standards are established, they are holding back from using the technologies. In contrast, only 16% of those polled said data privacy and security were the biggest roadblock to their adoption of AI technologies, while 13% said a lack of knowledge and tools were the main reason they are hesitant to use AI.

A large majority of surveyed employers, 70%, said they need workforce training and upskilling regarding regulatory compliance and risk-related skills concerning AI. Nearly half, 47%, said they believe their firms are not well prepared for potential regulatory changes due to AI.

The survey also polled employers about their perception of their workers’ attitude toward the use of AI and found that more than twice as many felt their employees were anxious about AI than excited about it. The CFA Institute reported only 26% of those polled, when asked to name three emotions to describe their employees’ attitudes toward AI, said they felt their employees were excited about the use of AI in investing, while 27% said they believed their workers are confident. Meanwhile, 60% said they believe their employees are anxious about AI, while 48% felt they are resistant and 41% perceived them as skeptical.

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Ontario Teachers’ Pension Plan Earns 4.2% in 1st Half of 2024

The Canadian pension fund’s asset value increased nearly C$12 billion for the year to June 30.



The Ontario Teachers’ Pension Plan Board reported a 4.2% return for the first half of the year, raising its net asset value to C$255.8 billion ($189.3 billion) from C$243.9 billion at the beginning of the year. This is compared with a 1.9% investment return and C$249.77 billion gain in asset value during the first half of 2023.

The pension fund also announced that its investment portfolio rose the same 4.2% during the 12 months that ended June 30 and that it earned five- and 10-year annualized net returns of 6.7% and 7.3%, respectively, with a 9.3% annualized return since its inception in 1990. The OTPP is fully funded for the 11th consecutive year and had a C$19.1 billion preliminary funding surplus, as of January 1.

“Our results for the first half of 2024 reflect an ability to generate positive returns in a range of market conditions across our investment teams, and maintain a well-funded status for our members,” said OTPP President and CEO Jo Taylor in a statement.

The pension fund’s portfolio allocation to equities increased to C$103.8 billion, as of June 30, from C$91.4 billion at the end of 2023, while its fixed-income allocation declined to C$94.9 billion from C$95.8 billion. Inflation-sensitive investments rose in value to C$53.5 billion from C$45.4 billion during the first half, while its real estate and infrastructure investments rose to C$71.7 billion combined, from C$67.4 billion.

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Meanwhile, the value of its credit investments declined to C$34.8 billion at the end of June from C$38.6 billion at the start of the year, and its investments in absolute return strategies rose to C$20.5 billion from C$19.5 billion.

The OTPP also noted that during the first half of the year, Chief Operating Officer Tracy Abel announced that she will retire at the end of 2024 and that Mabel Wong was named chief financial officer, succeeding Tim Deacon.


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