Morgan Stanley: only 8% of fund managers see AI boost investment returns

Artificial intelligence is spreading quickly through the global asset management industry, but its payoff for investors remains thin, according to a joint report by Morgan Stanley and consultancy Oliver Wyman reported on October 18, 2026. Only 8% of fund managers say AI has produced measurable improvements in their investment returns.

The September 2026 BluePaper, titled Breaking from the Pack: The Race for Above-Market Growth, draws on the Mercer 2026 AI in Asset Management Survey. That survey found 55% of asset managers have built AI into at least one stage of their investment process, while a further 27% are trialling applications.

Gains concentrated in operations

Among surveyed firms, 69% reported better operational efficiency and 55% pointed to improved insights and decision-making. Only 24%, however, said AI had lowered their costs. Investment research is where adoption runs deepest, at 49% of firms, followed by data processing at 40%.

Core investment decisions remain largely untouched. Just 13% of firms use AI in portfolio construction, and only 7% apply it to trade execution.

Productivity is not profit

The report warns that broader and faster research has yet to be shown to generate persistent alpha, meaning returns above market benchmarks. "Productivity gains do not automatically translate into enterprise-wide financial impact," the authors wrote.

The findings suggest AI is helping investment firms digest information more quickly, while its ability to lift investor returns consistently is still unproven. As questions grow across industries about the return on AI spending, the report highlights a clear gap between the pace of adoption and tangible financial results in asset management.