Lauren Cronin
Principal of Research Member Sales
Lauren Cronin is a Principal of Research Member Sales at Cutter. She has nearly 20 years of experience partnering with buy‑side firms across fintech and services, working with asset owners, asset managers, wealth managers, and global banks - supporting organizations as they evaluate operating models, technology strategy, and the evolving vendor landscape.
What will differentiate asset managers as AI and investment technology become more accessible? That question connected the discussions I heard at the 2026 FT Live Future of Asset Management North America conference with the deeper conversations I had with members last week at Cutter Connect-Scottsdale.
Across both events, three themes stood out: embedding AI in business strategy, building trusted data and resilient operating models, and strengthening the expertise that turns technology into better decisions. At the heart of each was a shared priority: listening to clients and keeping their best interests at the center of every decision. These themes are central to Cutter’s research, and I’m excited to share our perspective as we continue the conversation with members and shape our 2027 Research Agenda.
91%
of firms are planning to increase their AI spending next year.
Source: Trends in AI Usage in Investment Management, July 2026
AI Strategy Is Business Strategy
AI is now a business decision, not a separate technology program. Firms making the most progress start with a business problem and jointly redesign workflows across business and technology. Enterprise platforms, point solutions, internal tools, and AI solutions and agents must work together without creating new fragmentation. Scaling depends on data quality, ownership, governance and oversight, delegation limits, and measures of quality, cost, and value, not simply on access to better models. The challenge now is to translate these familiar principles into sustained investment and coordinated execution, making AI part of how the business operates and grows.
Key Insights
- EMBED AI: Integrate AI into every relevant decision and workflow while prioritizing governance and review.
- KEEP ECOSYSTEMS OPEN: Be open to using different models for different use cases. Avoid vendor lock-in.
- AUTOMATE WITH AGENTS: Accelerate workflows and value; retrain for autonomy, not just smaller teams.
- CUTTER’S TAKE: AI is an enterprise priority, with 92% of firms using GenAI across business areas and having formal AI governance policies in place. Investment is also rising, with 91% increasing spending broken down to 72% of firms planning budget increases of 1–25%, and 19% increasing budget more aggressively.
67%
of firms stated they are planning or are in the process of changing the deployment of their data management solutions.
Source: Data Management Benchmarking Survey, December 2025
Trusted Data Enables Resilience
Trusted data and adaptable data governance frameworks help firms scale without losing control as they enter new markets or form partnerships in areas such as asset-based finance, tokenization, and private markets. Growth depends on data that supports sound decisions, infrastructure that enables specialized expertise and resilient operating models, and a clear path to AI-enabled workflows. Technology transformations and data management projects still take 12 to 18 months and AI use cases are prompting firms to reconsider market data contracts to support new use cases and client needs. Firms should invest, or reinvest, in their data foundations, choose partners that can keep pace with changing strategies, and adapt controls without adding complexity.
Key Insights
- INVEST EARLY: Ensure appropriate data foundations and AI-ready workflows before pursuing returns.
- PRIORITIZE FIT: Choose transparent partners, not products, that can adapt with your strategy and workflows.
- ADAPT CONTROLS: Maintain compliance and governance; replace or revise rules that impede necessary change.
- CUTTER’S TAKE: 67% of firms stated they are planning or are in the process of changing the deployment of their data management solutions. 80% said they are selecting vended-cloud solutions.
51%
of firms expect significant AI-driven role changes within two years.
Source: Trends in AI Usage in Investment Management, July 2026
Expertise Defines the Edge
Technology can scale expertise, but it cannot transfer accountability. In the front office, AI can accelerate research, expand coverage, and surface patterns, while proprietary data and institutional knowledge help people determine whether signals align with portfolio mandates, risk constraints, and client needs. As analysis becomes cheaper, firms should look to reward judgment, learning agility, knowledge sharing, and effective human-machine collaboration over activity alone. Many firms discussed retraining their workforces and empowering early AI adopters and citizen developers to strengthen adoption. The strongest programs will help seasoned leaders adopt AI while enabling newer hires to build expertise faster through shared knowledge. Ultimately, firms must prepare people and look for talent that can interpret data outputs and exercise judgment.
Key Insights
- APPLY EXPERTISE: Use specialized knowledge to turn market change into growth.
- PROTECT VALUE: Use M&A and partners to add capability while preserving expertise, culture, and client experience.
- BUILD TALENT: Empower citizen developers to challenge AI and extend organizational expertise.
- CUTTER’S TAKE: 51% expect significant AI-driven role changes within two years. Advanced-level staff represent 41%* of Operations FTEs, while anticipated hiring growth is concentrated in entry-level and junior roles as firms assess AI and automation’s longer-term workforce impact. *Source: Trends in Investment Operations and Staffing, September 2026.
These conversations point to a future in which sustainable growth depends on how seamlessly firms connect AI, trusted data, and human expertise. The opportunity is to build resilient operating models that turn those capabilities into better decisions and outcomes for clients. Wherever members are in their journey, we’re here to help them turn insight into informed action, with practitioner-led research, benchmarking, and peer perspectives to clarify priorities, guide decisions, and navigate change with confidence.