An investigation into the significant impacts of automation in Asset Management

Benjamin Britton

Britton, B. and Atkinson, D. (2016) “An investigation into the significance impacts of automation in asset management”

17th International Scientific Conference on Economic and Social Development - "Managerial Issues in Modern Business", Warsaw, Poland.

This undergraduate level paper, written by Benjamin Britton and his tutor David Atkinson, was accepted by an academic journal and presented in Warsaw, Poland.

Abstract

This paper explores the implications of applying automation, and a technological force in which computer systemscan fulfill human tasks, in the asset management industry. The investigation explores a number of significant topicsin which managers should begin contemplating, including workforce origination post automation and the primaryskills necessary to facilitate augmentation, and how robot advisors could challenge an organisation’s valueproposition. The investigation was centered on Jupiter Asset Management (JAM) to support their preparations forautomation, as well as to provide insight from the “grass roots”. Research centered on interviews with experiencedindividuals within automation and asset management. The first interviewee was Simon Crawford, a Fixed Income,Multi-Asset Performance, and Risk Manager. The second interviewee was Daniel Hulme, CEO of Satalia andAdvisor to the UK Home Office. Of crucial importance to the success of this investigation’s data analysis beforeand after the commencement of interviews, was the use of an analytical pattern matching produce, which examinedqualitative information. The findings identify that current entry level occupations with systematic and repetitivetasks in a fixed domain, will be automated. Placing a greater demand for analytical abilities in junior recruits as thecognitive understanding of what data represents is a weakness of Artificial Intelligence (AI) thus strengtheningaugmentation between employees and technology. Automated investment profilers known as robo advisors willchallenge the value proposition of organisations, such as JAM, which in time will need to be onboard with thetechnology to remain competitive within a growing millennial market. The paper concludes that there is an evidentneed for asset management firms to design training processes that blend enhanced senior level shadowing, withprogrammes focused on broadening juniors’ abilities to interpret and apply AI’s generated data through a series ofnewly identified skills.