Foreword
When the AI tsunami hits, those who’ve made it out to sea will ride the swell — the rest will face the wave head-on.
That is the warning and the invitation offered by those who understand generative AI’s (Gen AI) potential — and its risks — better than anyone.
This report is the product of AIMA’s second in-depth exploration of how fund managers around the world are integrating these transformative tools across their organisations. It includes a comprehensive survey of fund managers and institutional investors spanning a wide spectrum of investment strategies and firm sizes (see Methodology), and is enriched by qualitative insights from those furthest along the Gen AI adoption curve.
These experts argue that, while much of the conversation around Gen AI rightly focuses on governance and risk mitigation, the AI era will not reward those who are overly cautious. Moreover, harnessing the coming wave will require a skilled captain at the helm and a well-trained crew to keep things on course.
Therefore, this report emphasises the lessons learned from leaders in Gen AI adoption within the alternative investment space, providing a roadmap for others.
While many of the most advanced adopters are among the largest by AUM, several of the lessons shared here focus on cultural and operational practices that firms of any size can apply.
These lessons include how to establish a robust governance foundation for Gen AI; the key risks and limitations of the technology; how investors are responding to its use by fund managers; and what the most innovative adopters are aiming to achieve next.
We hope this report supports you on your own Gen AI journey.
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Tom Kehoe
Managing Director, Global Head of Research and Communications, AIMA
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Drew Nicol
Director, Research and Communications, AIMA
Methodology
The findings presented in this report draw on a combination of quantitative and qualitative research conducted in the first half of 2025.
At the core of the study is a survey of 150 fund managers, representing an estimated US$788 billion in assets under management (AUM), alongside 18 of the largest institutional investors, including US state pension funds, endowments, and family offices across North and South America, Europe, and Asia Pacific. Respondents reflected a wide range of investment strategies, geographies, and AUM bands. By region, the UK, US, and APAC each accounted for roughly one-third of responses.
Throughout the report, we distinguish between “large” and “small” hedge fund managers, with large managers defined as those overseeing more than US$1 billion in AUM. This segmentation enables meaningful comparisons of perspectives and adoption trends across firms of different sizes. Notably, 60% of fund manager respondents fall into the large-manager category.
The survey results are complemented by dozens of hours of qualitative interviews and roundtables with fund managers, investors, and industry service providers. These discussions provided essential context and deeper insight into how generative AI is being adopted and reshaping practices across the industry.
To illustrate real-world applications, the report also includes case studies from hedge fund managers and service providers actively experimenting with and implementing generative AI tools within their organisations.
This study builds on AIMA’s first dedicated exploration of generative AI, Getting in Pole Position: How Hedge Funds Are Leveraging Gen AI to Get Ahead. Where relevant, we present time-series analysis to highlight how sentiment and adoption have evolved since that initial research.
Download the report
For any questions about the report, please contact Tom Kehoe, Managing Director, Global Head of Research and Communications.