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The Growth and Performance of Artificial Intelligence in Asset Management

Truvace record
TRV-2026-2500raw data (JSON)
Version
v1Published
First published
Evidence type
Observational studyPreprint, not yet peer reviewed
Sources
1 sourcePeer-reviewed
sha256
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We examine the growth and performance of AI-driven investing. Using investment advisers' regulatory disclosures, labor market data, and fund strategy descriptions, we document that AI-driven investing has grown steadily since the early 2010s and is concentrated among hedge funds. AI hedge funds outperformed non-AI hedge funds in the early years, but this outperformance declined over time, even among early adopters. Contrary to concerns about AI-driven strategy homogeneity, AI hedge funds exhibit lower return com…

50Gain side

How the two sides scoreClose call

51Problem side

The gain

In a study of 7,896 US hedge funds, funds that disclosed AI-driven strategies beat non-AI funds by about 6% a year after benchmark adjustment in the early years.

The problem

The same study found the AI funds' edge fell to statistically indistinguishable from zero after 2017, even for funds that adopted AI early.

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What the scores mean

G is the gain side, out of 100. It goes up when the gain is specific, when it measurably helped people and when the sources behind it are strong.

P is the problem side, out of 100. It goes up when the problem is specific, when it measurably hurt people and when the sources behind it are strong.

Sources

1 on file
  1. NBER Working Paperdoi:10.3386/w35273
    Peer-reviewed2026-06-01

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v1

Truvace Impact Record TRV-2026-2500, v1: “The Growth and Performance of Artificial Intelligence in Asset Management.” Truvace, 2026-11-12. /record/TRV-2026-2500 (accessed on the day you copy it). sha256 abc14a9f6daeccf8…

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