More than two-thirds of investment managers are now using AI in their front office

simcorpa global FinTech provider to the investment management industry, has revealed that the majority of buy-side firms are now actively using artificial intelligence to support front-office activities.

According to the firm’s new 2026 InvestOps report, 70% of buy-side firms have successfully implemented AI within the front office. This represents a significant increase compared to the same survey last year, when only about 10% of respondents were actively considering AI tools.

The findings are based on an annual global survey of 200 senior executives from asset managers, pension funds and insurance companies. This study, conducted by WBR Insights, aims to understand the technology priorities and operational challenges facing investment managers heading into 2026.

This research shows that AI adoption has moved beyond experiments and pilot programs to become business-critical for many companies. Technology vendor and platform consolidation emerged as the most common technology initiative, cited by 58% of respondents, closely followed by technology architecture and data infrastructure modernization at 54%. Both efforts were recognized as essential foundations for scaling AI, automating workflows, and simplifying complex technology environments.

For the first time in the last three years, innovation has overtaken operational efficiency as the primary driver of investment in technology and operations. 55% of respondents chose to achieve competitive differentiation through innovation, while 44% prioritized cost control and 33% prioritized operational efficiency.

As the use of AI matures, businesses are becoming more selective when selecting third-party solutions. Vendor stability was ranked as the most important criterion by 57%, ahead of access to innovation, analytical flexibility, and proven return on investment. Respondents emphasized the importance of strong data governance, cybersecurity, and regulatory alignment, especially as proprietary data is increasingly used to train and operate AI models.

The report also points to growing optimism about innovation and alternative investments in the private market. Over the past 12 months, the percentage of respondents who believe alternatives offer the greatest opportunities for innovation has increased by 24 points to 51%. Together, AI, generative AI, and advanced analytics were ranked as a top innovation opportunity by 72% of executives.

SimCorp CEO Peter Sanderson said:

“Advances in AI will have the greatest value for investment professionals in improving decision-making and efficiency when supported by a centrally managed and integrated data layer.”