Supermodel II: May the source be with you: Asset managers and the rise of AI

Siobhan Noble, Chief Data and AI Officer

The asset management industry is abuzz with talk of artificial intelligence. Conference panels, white papers and boardroom conversations are filled with bold predictions about the future of data-driven investing. Yet, for all the hype, the reality is more measured than revolutionary. While AI is making inroads in distinct processes, fewer than one in five firms have deployed it in core operations. Most managers admit they are under-invested, hamstrung by poor data quality and tight budgets, and industry-wide adoption remains patchy. The result? A ‘proof of concept graveyard’ littered with pilot projects that never scale, and a sector still waiting for true transformation. 

Why is progress so slow? 

Industry observers and academics alike point to a series of foundational gaps. AI, for all its promise, cannot deliver meaningful results without robust data infrastructure and well-designed processes. Many asset managers are still wrestling with siloed systems, legacy technology, and unwieldy volumes of unstructured data – think PDFs and bespoke private markets documents. The lesson, echoed in both boardrooms and business schools, is clear: digitising a broken process merely digitises inefficiency. The imperative is to fix the process first, then apply AI. 

Culture and leadership also play a decisive role. Executive-level sponsorship is not a luxury but a necessity; without it, even the most promising initiatives risk stagnation. While bottom-up experimentation is increasingly common – teams rolling out Copilot licences, for example – the absence of top-down strategy remains a critical barrier. Defining the right problems and building a credible business case with measurable ROI is the missing link. Champions and super-user groups can catalyse change, but it is leadership that must set the direction and sustain momentum. 

Where is AI making a difference? 

Our latest Supermodel II report reveals a telling pattern: AI adoption is robust in isolated tasks such as marketing, risk management, and RFP processes, but remains weak in core operations. Systematic deployment in areas like fund governance is rare, with 60% of firms conceding they are underinvesting in AI for fund launches. Most use cases, in short, are peripheral rather than transformative. 

There are, however, notable exceptions. Carne’s Fund Launch Lifecycle programme, for example, set an ambitious target to almost halve the average fund launch timeline. Here, AI is not an afterthought but a central driver, digitising onboarding, automating legal and compliance reviews, and orchestrating complex workflows to accelerate speed-to-market. Our multi-agent systems will streamline due diligence and KYC, support the drafting and reviewing of legal documents, extract and validate data from unstructured documents such as the prospectus, and automate regulatory reporting and client communications. The emphasis is on speed and enhanced client experience, not merely efficiency. 

Emerging use cases are also gaining traction. Compliance monitoring, advanced risk management tools enabling proactive oversight and anomaly detection, enterprise knowledge bases and intelligent automation are no longer ‘nice-to-haves’. As client expectations rise, these capabilities are fast becoming essential for firms intent on remaining competitive. 

The 600-day imperative 

The countdown has begun. With just 18–24 months to move from proof-of-concept pilots to enterprise-scale AI, asset managers face a defining moment. The so-called ‘600-day imperative’ is more than industry jargon: it’s a warning. As Supermodel II makes clear, most firms are still tinkering at the edges, while the pace-setters are gearing up for transformation. In a market where speed, personalisation and data-driven insights are fast becoming the price of entry, the next two years will draw a sharp line between leaders and laggards. 

What should fund managers do next? 

• Focus on ROI, not hype. Start with the problem you are trying to solve – speed, value, client experience, scalability – not ‘what can AI do for me?’ Build a business case, set KPIs and measure impact. 

• Invest in data and process foundations now. Clean, centralised data and well-designed workflows are essential for scaling AI. Building the ‘plumbing’ is hard but non-negotiable. 

• Secure executive and board-level sponsorship. Leadership must set priorities and commit resources. Champions and super-user groups help drive bottom-up change, but top-down commitment is vital. 

• Adopt a hybrid approach. Encourage bottom-up experimentation while driving top-down strategic programmes focused on clear business outcomes. 

• Partner for scale. Outsource heavy operational lifts and work with trusted tech vendors or integrators who understand both technology and the industry. Most managers, especially smaller ones, do not have inhouse technology teams or big budgets so they will need partners to scale and keep up. 

• Focus on ROI, not hype. Start with the problem you are trying to solve – speed, value, client experience, scalability – not ‘what can AI do for me?’ Build a business case, set KPIs and measure impact. 

How Carne can help 

Carne’s approach is to put data at the heart of everything, bringing scalable advantages to our clients. We have built a strong data foundation, with information managed in one place. AI and automation will further accelerate the fund lifecycle, from onboarding and due diligence to reporting and compliance. Staff are being trained and supported to use new digital tools, with a dedicated Data & AI Centre of Excellence. Carne is also working closely with partners to speed up innovation and roll out new technology to transform the investment lifecycle. 

Already, over 50 AI use cases are live or being tested, saving thousands of hours of manual work. AI agents will help with onboarding, due diligence, legal reviews, and extracting information from complex documents. Digital onboarding packs and automated document handling will also cut processing times considerably. In short, the opportunity for asset managers is real, but the clock is ticking. The next two years will separate the leaders from the laggards. May the source be with you. 

For more, download our Supermodel II report.