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Asset Servicing | July 17, 2024

Alts in the AI Era

An LP’s Perspective

For many years, sophisticated asset allocators have leveraged alternative assets for portfolio diversification but struggled with its manual nature and transparency issues; consequently, investors and asset servicers have turned to artificial intelligence (AI) to potentially automate processes, enhance investment decisions and bolster risk management.

To further explore how AI technology could and should impact institutional investors’ investment processes, we partnered with Alternatives Watch on a survey of nearly 100 global asset allocators.

The survey results revealed the impact that AI can have on the  investment decision-making process as well as insight into the reason why many allocators have hesitated to incorporate the technology into their investment processes.

Our Commitment to Asset Owners

At Northern Trust, we have overseen key AI-driven automation initiatives, from automating the capture of investor statements off web portals to leveraging machine learning techniques that transform those statements into usable data to creating client-specific custom algorithms that tag and store documents. As we look to continue to digitize the servicing of alternative assets and focus on implementing AI across our Asset Servicing business, we embraced this opportunity to reach out to the asset allocator audience to determine their level of adoption of similar AI tools, in partnership with Alternatives Watch.

With over 1,800 global asset owner clients, Northern Trust has had an unwavering commitment to support the increasingly sophisticated needs of complex asset owners and allocators. Innovating for our clients in a way that mirrors their missions, and their values is something that the Asset Owner segment at Northern Trust is inspired by and passionate about. As AI continues to transform alternative asset processing, we will work alongside our clients to improve access to the data they need, helping them gain valuable insights for investment decision-making.

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