PALO ALTO, CA and NEW YORK, NY / ACCESSWIRE / October 9, 2024 / DwellFi, an innovative technology firm specializing in Applied AI technology and Use Cases for fund operations in the asset management sector, is proud to announce the release of a comprehensive survey report titled, "The State of Applied AI in Fund Administration." The survey was conducted by Alternatives Watch with key insights from industry experts at Withum, Cole-Frieman & Mallon, and Dwell.FI.
DwellFi discovered that 40% of fund admins currently use Gen AI tools, a staggering 80% plan to implement Gen AI within the next 12 months. This shift underscores the growing recognition of AI's potential to revolutionize fund operations, drive efficiency, and enhance competitive positioning. More insights can be found here (link to survey)
The survey gathered responses from senior executives at fund administrators ranging in AUA, and reveals a rapidly evolving landscape where Gen AI is becoming a critical differentiator.
Kumar Ujjwal, Founder and CEO of DwellFi, emphasized the transformative power of AI, "Today's AI is exceptionally adept at handling repetitive tasks, outperforming humans in specific areas. This capability is reshaping the fund administration landscape, enabling firms to achieve unprecedented levels of efficiency and scalability."
Key Findings:
Gen AI as a Competitive Necessity: Over half of the respondents (57.14%) believe that AI is essential to stay competitive, and 50% see it as crucial for future growth. This sentiment is echoed by industry leaders who recognize AI's ability to streamline complex processes and deliver actionable insights from fragmented data sources.
Strategic Implementation: Nearly three-fourths (71.43%) of firms are investing in AI tools and infrastructure, with many establishing dedicated AI Centers of Excellence and partnering with online learning platforms for staff training. This strategic approach ensures that firms are well-prepared to leverage AI's full potential.
M&A Activity and Valuation: Nearly two-thirds of respondents also said they are collaborating with AI vendors and partners (64.29%) and developing a clear AI strategy (64.29%). In an environment characterized by a flurry of mergers and acquisitions, AI stands out as a compelling differentiator. By automating labor-intensive workflows such as portfolio reconciliation, investor onboarding, and fund conversions, AI enables fund administrators to scale efficiently without a proportional increase in headcount. This capability not only enhances operational efficiency but also significantly boosts firm valuations.
Skyler Steinke, a seasoned veteran in fund administration who recently joined DwellFi, added, "AI is a game-changer in fund administration. It enhances decision-making, boosts productivity, and provides a competitive edge that is crucial in today's fast-paced market."
Susan Barreto, Editor of Alternatives Watch, added, "The survey report underscores the pivotal role of AI in transforming fund administration. As firms navigate the complexities of M&A activity and strive for growth, AI emerges as a vital tool for enhancing operational efficiency and driving competitive advantage."
For more information and to access the full survey report, DOWNLOAD HERE.
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About DwellFi
DwellFi is an AI-first company in the Fintech sector specializing in the fusion of AI, blockchain, and tokenization technologies to support the asset management industry's scale, productivity, and growth challenges. Our award-winning SOC-2, Type II SaaS platform caters to Fund Administrators, Family Offices, and Private Funds across every asset class and management scenario. Learn more about DwellFi at dwell.fi
About Withum
In today's dynamic marketplace, alternative investment firms require top-tier service providers to deliver audit, tax and advisory services with expertise, accurate technical guidance and timely execution. With over 50 years of experience, Withum offers the benefits of a large organization while maintaining the personal attention and service typically expected from a local firm. With offices in key cities and financial hubs nationwide, our team of professionals are equipped to help you navigate the challenges of starting or managing your fund.
About Cole-Frieman & Mallon
Cole-Frieman & Mallon LLP is a leading investment management law firm known for providing top-tier, innovative, and collaborative legal solutions for complex financial services matters. Headquartered in San Francisco, Cole-Frieman & Mallon LLP services both start-up investment managers and multibillion-dollar funds. The firm provides a full suite of legal services to the investment management community, including fund formation (hedge, VC, PE, real estate), investment adviser and CPO registration, counterparty documentation (digital and traditional prime brokerage, ISDA, repo, and vendor agreements), SEC, CFTC, NFA and FINRA matters (inquiries, exams, and compliance issues), seed deals, cybersecurity regulatory matters, full-service intellectual property counsel, manager due diligence, employment and compensation matters, and routine business matters. The firm also publishes the Prominent Hedge Fund Law Blog. For more information, please add us On LinkedIn, follow us on X (formerly Twitter), and visit us at colefrieman.com.
About Alternatives Watch:
Alternatives Watch is a premier source of news and analysis for the alternative investment industry. Through in-depth reporting and expert insights, Alternatives Watch provides valuable information to help industry professionals stay ahead of market trends.
SOURCE: DwellFi