2026 Outlook: Optimizing Talent – Staffing Considerations for 2026 and Beyond

Training Tomorrow’s Workforce With AI in Mind

Recognizing AI’s potential to transform business processes, asset management firms will prioritize training and development programs to equip their talent with vital AI competencies. While the front office has often led the way in AI adoption in recent years, we expect more firms to prioritize comprehensive AI training — emphasizing its ethical use — to foster acceptance, responsibility, and readiness across the organization. We expect initiatives will range from lunch and learn sessions and structured online learning modules to partnerships with third-party technology providers (and even academic institutions).

Cutter also predicts that asset managers and asset owners will increasingly integrate AI-focused certifications into their professional development plans and encourage employees to participate in industry conferences to close knowledge gaps, foster innovation, and create a culture of continuous learning. Ultimately, well-versed talent will help firms leverage AI for improved decision-making, operational efficiency, and client engagement.

Opportunities for External Services

Asset managers and asset owners will consider opportunities to use external services to improve operational efficiency and reduce risk. However, the rationale for including managed services, BPO, and outsourcing as part of firms’ operating model is evolving as firms reassess which functions deliver the greatest value when performed externally versus in-house.

In the front office, outsourcing considerations are approached carefully. While firms may outsource select functions, such as trade execution or technology platforms to specialized providers, most will retain core investment decision-making capabilities internally to preserve the intellectual capital and “special sauce” that make each firm unique. Firms are also turning to third-party vendors for expertise and technology-driven services to help with data management and cumbersome workflows to help keep up with client expectations. This is especially relevant for firms seeking access to advanced infrastructure and expertise but want to avoid making a significant investment in solutions that they must manage and maintain.

Meanwhile, firms remain comfortable outsourcing many back-office operations, with many relying on mature outsourcing models and proven service providers, allowing asset managers and asset owners to streamline processes, reduce overhead, and focus internal resources on strategic initiatives. We see the trend of “as-a-service” solutions accelerating and predict that firms will continue taking advantage of these solutions to help them scale. But as firms shift tasks to third parties, employees’ responsibilities will shift from “doing” to “overseeing.” And that means that firms will emphasize a partnership mindset with the various providers. Investment managers will be working on updating policies and procedures, including escalation protocols, audit support, and SLAs to support this oversight.

Supporting a High-Performing Workforce

To sustain flexibility and performance, asset managers and asset owners are exploring a wide array of strategies to adapt to employee needs and market demands. For example, in their pursuit of an inclusive and high-performing workforce, firms like Bank of America, JPMorgan, and Schwab are recruiting and developing programs to actively support neurodivergent employees. Our 2025 research study on The Changing Role of IT found that 50% of firms plan to add training and certifications, and 40% plan talent and staffing model changes. But we don’t expect that to be limited to IT professionals. In fact, we anticipate firms will continue evaluating and expanding training programs to enhance business-user development, change management, and other soft skills, ensuring all employees can thrive in evolving work environments.

And while the hybrid work model established during the pandemic will remain a mainstay in 2026, firms will continue working to strike the right balance between organizational performance and employee well-being. We’ve seen the headlines regarding firms mandating more “in-office” days, and expect asset managers and asset owners will continue refining hybrid policies to accommodate evolving business needs. To that end, firms will continue to implement and conduct regular reviews of hybrid work arrangements to ensure alignment with collaboration, productivity, and client goals. We also expect investment in digital collaboration tools to continue to support distributed teams. The ability to offer flexible work arrangements has become a key differentiator in attracting and retaining skilled professionals, particularly as competition intensifies for AI and technology talent.

2026 and Beyond

To thrive in today’s challenging environment, it’s essential that asset managers and asset owners optimize their talent and staffing initiatives. By investing in AI training, adopting a strategic approach to outsourcing, and employing varying strategies to support high-functioning employees, asset managers and asset owners will position themselves for both channel innovation and driving operational efficiency. Firms that thoughtfully execute these strategies will find themselves well equipped to capitalize on emerging opportunities and deliver lasting value to clients in 2026 and beyond.

Cutter is examining the workforce trends through a variety of upcoming research efforts, including a look into the NextGen Workforce, a 2026 Operations Staffing and Organization study, and other related research. If you are interested in these topics or have insights to share, let’s talk. Contact us at [email protected].