AI reshapes asset management — and the people behind it

The rapid advance of artificial intelligence is fundamentally reshaping how public asset managers — including central banks and sovereign wealth funds — operate.

The Bank of Korea's Reserve Management Group said Saturday that staff roles at asset management institutions are shifting quickly away from routine execution toward interpreting and validating AI-generated outputs and making final investment decisions. However, fewer than one in five public asset managers has a firm-wide AI strategy in place, indicating that adoption remains in its early stages. The findings appeared in a guidance note published jointly with the World Bank's Treasury department titled "AI Guidance Note for Public Asset Managers." Public asset managers include central banks, sovereign wealth funds and public pension funds.

The guidance note divides AI applications in asset management into two broad categories: productivity enhancement and investment strategy support.

On the productivity side, AI is being used to automate data extraction and draft reports, improving efficiency in repetitive tasks. For investment strategy, it supports decision-making through market information analysis, portfolio construction and trade execution, the Bank of Korea said.

The note also identifies a broader shift in the role of asset management staff. As AI becomes more prevalent, the ability to validate AI-generated results and use them as the basis for final decisions is growing in importance — outweighing the value of simply compiling and analyzing data.

Yet AI adoption remains at an early stage. Only about 16 percent of public asset managers have established a firm-wide AI strategy, according to the report. Just 12 percent of central banks use AI in managing their foreign exchange reserves.

The Bank of Korea said expanding AI use must go hand in hand with building a "responsible AI" framework. Institutions need to develop governance structures and management systems capable of addressing risks inherent to AI, including data bias and algorithmic errors.

To that end, the note identifies three core elements: a clear vision backed by senior leadership, a strategic foundation encompassing AI policy and internal guidelines, and the development of infrastructure and organizational culture.

"AI adoption is no longer optional — it is a strategic imperative," the Bank of Korea said, adding that each institution needs to set priorities by comprehensively assessing feasibility and expected impact.

"Responsible AI adoption is not simply a matter of applying technology — it is a process of building institutional capacity and governance," it said. "Sharing experience and cooperation among global peer institutions is essential."