“Data Before AI Adoption...”: The ‘Survival Formula’ for the Asset Management Industry

[Financial News]  As the adoption of artificial intelligence (AI) emerges as a major challenge for the asset management industry, data management and internal control capabilities have been identified as key factors determining asset managers’ competitiveness. The assessment is that firms need systems for managing records in preparation for financial regulators’ inspections and for preventing conflicts of interest, just as much as they need to make use of AI technology.
According to the financial investment industry on the 13th, GJ Tech held its sixth Asset Management Forum online on the 11th under the theme “Between Innovation and Regulation: A New Path for Asset Management.” The event, organized to mark the company’s 11th anniversary, featured experts from PwC Consulting, Shin & Kim, Dimension Investment Advisory and Kim & Chang.
Building data platforms for the AI transition was a key topic at the forum that day. To apply AI to actual asset management operations, firms must first establish a foundation for the systematic management and use of data before introducing the technology.
The importance of data and records accumulated in the course of business was also emphasized in connection with responding to inspections and sanctions by financial authorities. The point was that firms need management systems capable of demonstrating whether internal controls are actually being followed, rather than merely putting procedures in place.
The 2027 market outlook also examined both the opportunities arising from increased investment in AI and market volatility. In managing conflicts of interest in private funds, independent verification and records of decision-making were identified as key to securing investor confidence.
GJ Tech CEO Jaewon Choi said, “This is a time to actively embrace the AI transition and thoroughly prepare for tightening regulations,” adding, “We will continue to provide practical support so asset managers can focus on their core investment work.”
GJ Tech currently provides services including financial investment business registration, IT infrastructure development, and internal control and investment management support systems such as theHI.
Meanwhile, the financial investment industry expects the importance of data management and internal controls to grow as AI use expands. In particular, smaller and midsize asset managers must handle investment operations and regulatory compliance with limited staff, making greater efficiency in these areas a key challenge.
An industry source said, “Asset managers’ AI competitiveness depends not so much on simply adopting technology as on how robustly they establish data reliability and internal control systems,” explaining, “For smaller and midsize asset managers in particular, securing systems needed to respond to regulations, as well as building investment capabilities, can be an important competitive factor.” 
[email protected] Kim Gyeong-a Reporter