Only 8% of fund managers report improved investment returns from AI adoption: Morgan Stanley–Oliver Wyman

A joint report by Morgan Stanley and Oliver Wyman reveals that only 8% of fund managers have reported measurable improvements in investment returns from AI adoption. The findings challenge the assumption that AI integration in asset management automatically leads to better financial outcomes. The study, titled 'Breaking from the Pack: The Race for Above-Market Growth,' emphasizes that while AI is increasingly used across the industry, its impact on returns remains limited for most firms.

The research highlights a growing trend of AI adoption in asset management, with 55% of asset managers utilizing AI tools. However, the same report notes that the majority of these firms have not yet realized significant improvements in investment returns. The study points to a disconnect between the widespread deployment of AI and its tangible benefits, suggesting that current implementations may not be fully optimized for performance gains.

According to the Mercer 2026 AI in Asset Management Survey cited in the report, 55% of asset managers are using AI, but only 8% have seen measurable improvements in returns. The data also reveals that 27% of firms are still in the early stages of AI integration, with limited success in translating AI capabilities into financial performance. This indicates that while AI adoption is on the rise, its effectiveness in driving returns remains uneven across the industry.

The limited impact of AI on investment returns raises questions about the cost and complexity of implementation. Firms may face challenges such as high initial investment, integration with legacy systems, and the need for specialized talent. Additionally, governance and regulatory compliance remain significant hurdles, as AI systems must align with evolving standards. Market reactions suggest that investors are cautious, with many waiting for more concrete evidence of AI's value before committing substantial resources.

The report underscores that AI adoption in asset management is still in its early stages, with many firms yet to fully realize its potential. While the technology is being widely deployed, its ability to consistently improve investment returns remains unproven. As the industry continues to explore AI's capabilities, the focus is shifting toward refining implementation strategies and addressing the barriers that hinder performance gains.