Vidrio Financial: Is Artificial Intelligence the Future of Institutional Investing?

Thank you for your participation. Your responses will assist Vidrio Financial in future client guidance on the topics of:

- artificial intelligence.

- machine learning.

- deep neural networks.

- and more.

Answers will be collected anonymously and analyzed alongside the other respondents. We will share the results and related commentary in an upcoming Vidrio insight report. Please be sure to hit the submit button at the end of the survey to capture your answers.

Remember you can always learn more about our services and solutions for today's institutional investor by visiting us at: https://www.vidrio.com/software-services

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* 1. What is your industry?

Asset Manager.

Asset Owner.

Consultant/OCIO.

Family Office.

Fund of Funds.

Other.

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* 2. What is your level of familiarity with Artificial Intelligence (AI) in institutional investment strategies?

Extremely familiar.

Very familiar.

Somewhat familiar.

Not so familiar.

Not at all familiar.

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* 3. Have you incorporated AI-based tools or technologies into your investment decision-making process today?

Yes, extensively.

Yes, to some extent.

No, but we are considering an application for the future.

No, not considering it currently.

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* 4. What concerns you the most about integrating AI into your investment strategies?

Lack of interpretability in AI models.

Regulatory and compliance issues.

Data privacy and security.

Overreliance on technology.

Not applicable, no concerns.

Other (please specify)

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* 5. Do you believe a ChatGPT, Google Bard, Claude AI, Bing AI Chat, or other bot could ever be used in institutional investing to help manage, monitor, and optimize allocation decisions?

Yes, I believe it could help greatly in daily workflows.

No, I don’t trust it yet.

Maybe, although there would be a level of oversight I would still want my team to have to understand the limitations that a system like ChatGPT (or others) would run into once integrated into our processes.

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* 6. How do you view the role of human expertise in AI-driven investment decisions?

Human expertise is essential for interpretation and context.

AI can replace certain aspects of human decision-making.

A balanced approach, with AI and human collaboration, is ideal.

AI should drive all investment decisions.

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* 7. How impactful do you believe artificial intelligence will be in helping automate operations and reduce costs for institutional investors?

Extremely helpful.

Somewhat helpful.

Neutral.

Limited help.

no help at all.

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* 8. Which factor is most important when evaluating artificial intelligence solutions for investment decisions?

Accuracy of AI system recommendations.

Transparency of AI algorithms.

Customizability to fit specific investment strategies and/or asset classes.

Scalability and efficiency from the provider to the investment team actively using the platform.

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* 9. How do you perceive the potential ethical challenges related to AI in institutional investing?

AI ethics should be a primary consideration in their adoption.

Ethical concerns are secondary to overall portfolio performance metrics.

Ethics and performance metrics should be balanced for institutional investments.

AI ethics are not a concern.

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* 10. Given the current state of artificial intelligence, which stage of the investment cycle do you think AI would be most effective in improving?

Identifying investment opportunities.

Gathering and automating the data processing and onboarding of new investments.

Risk assessment and exposure management.

Portfolio construction and optimization.

Trade execution and monitoring.

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* 11. What do you consider the biggest barrier to wider AI adoption among institutional investors?

Lack of in-house AI expertise.

Uncertain ROI on AI investments and how it would impact our portfolios and investment strategies.

Resistance to change within the organization.

Regulatory constraints.

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* 12. Do you believe there are any limitations to AI when it comes to institutional investing?

Yes

If you said yes, above please describe what those limitations might be below:

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* 13. How receptive are you when it comes to implementing AI in your investment operations?

0-25%

26-50%

51%-75%

76%-100%

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* 14. What is the biggest red flag in institutional investing when it comes to artificial intelligence?

cybersecurity - risks of personal data getting outside of the system.

data reconciliation errors.

can't be relied upon to make allocation decisions.

Other (please specify)

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* 15. Do you believe that artificial intelligence will open your investment operations to increased cyberthreats?

Yes

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* 16. When researching artificial intelligence solutions do you believe that you are better off undertaking AI innovations internally or leaving it as an outsourced expense?

Develop internally.

Outsource it.

There are no plans at this time to leverage AI for our operations.

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* 17. Where are you most interested in expanding your use of artificial intelligence?

clerical tasks.

data management, collection, enrichment, and reconciliation.

portfolio management, compliance, investment valuation, risk analysis, and reporting.

allocation decisions.

Other (please specify):

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* 18. Do you believe that artificial intelligence will replace investor jobs or simply enhance their ability to become more efficient in reducing manual operations?

replace jobs.

enhance abilities to become more efficient in reducing manual operations.

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* 19. Is your organization making any specific hires to better understand the use of artificial intelligence relating to your business operations?

Yes

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* 20. Do you believe that artificial intelligence can improve data transparency by eliminating data anomalies that could occur in a human-only operation?

Yes

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* 21. How do you stay updated about advancements in artificial intelligence that could impact your investment strategies?

Attending AI and institutional investment conferences.

Reading research papers and industry publications.

Collaborating with AI experts.

Relying on vendor recommendations.

Rely on internal group or new hire.

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* 22. In your opinion, which institutional investor would be most open to implementing artificial intelligence to support either their front, middle, or back office operations?

Sovereign Wealth Fund.

Family Office.

Asset Manager.

OCIO and/or Consultant.

Endowment.

Foundation.

Pension Fund.

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* 23. What is the one asset class that you wish artificial intelligence could provide you with more support in helping to make investment decisions today?

Fixed Income.

Hedge Funds.

Insurance.

Real Estate.

Banks.

Commodity.

Infrastructure.

Private Debt/Credit.

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* 24. What is your percentage allocation to external funds?

0%-25%.

26%-50%.

51%-75%.

76%-100%.

N/A

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* 25. What is your AUM?

$10M-$100M.

$101M-$500M.

$501M-$1BN.

>$1BN.

<$10M.

N/A