Survey: Over Half of Alts Investors Leveraging AI for Market Predictions

A recent survey conducted by Dynamo Software reveals both a growing adoption of artificial intelligence (AI) among investors in the alternative investment space and a desire to increase allocations to AI-related investments.

The survey, which gathered insights from GPs and LPs, found that more than 50% of respondents are utilizing AI to enhance predictive intelligence regarding market trends and investment outcomes. It also found that 75% of LPs plan to increase their allocations to AI-focused investments within the next year, with strong interest in sectors like cybersecurity (56%), predictive analytics (55%), and data centers (54%). Respondents indicated that transparency and a proven track record are crucial factors in their investment decisions regarding AI-driven funds.

While the survey indicated that many firms are still in the early stages of exploring AI integration, 27% of GPs and LPs report being fully engaged with the technology. And nearly half (47%) of respondents noted improvements in portfolio performance attributed to AI, showcasing its potential impact on investment strategies.

Source: https://www.businesswire.com/news/home/20241106041669/en/