Artificial intelligence is capable of improving the operations of asset managers and owners in many ways, according to a new whitepaper by Northern Trust Corp.

Both back and middle office operations can use data strategies to boost productivity, drive revenue, improve security and manage risk, stated the paper. One key was is analyzing data, with companies using AI to examine traditional data like asset flows and historical performance, as well as unstructured or alternative data like images, documents and social media posts.

“Certainly we see the significant ways AI can help financial services providers optimize the data they access on a daily basis,” said Penelope Biggs, chief strategy officer for corporate and institutional services at Northern Trust, in a press release. “It is important to think strategically about how incorporating AI and automation into business processes can benefit the end user, whether that is by reducing risk, increasing operational efficiency or enhancing overall performance.”

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While there are many potential uses for AI, a company will get the best use out of the technology if it forms a clear strategy for how and where to use it, the paper noted. Companies should begin to strategize based on their specific business needs and find a way to adopt AI that aligns with their goals.

“At Northern Trust, we have a strategic plan that focuses on delivering a data-centric technology architecture aligned to our clients’ future business needs,” said Biggs. “The significant investment we are making in our future-state asset servicing platform will ultimately deliver an end-to-end technology solution to our asset owner and asset manager clients globally. Incorporating the use of AI and machine learning is a key component of our strategy to optimize results and drive operational alpha.”

Read: Global institutional investors agree tech will transform the industry by 2025

Copyright © 2019 Transcontinental Media G.P. Originally published on benefitscanada.com

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