SHIFT · GLOBAL
AI's expanding market share traps active asset managers in underperformance trap
Bloomberg analysis shows AI-driven systematic trading and index concentration now dominate markets, leaving active managers with shrinking alpha and crowded residual trades, forcing business model rethinks.
WHY IT MATTERS
Active asset managers must pivot to AI-native strategies or accept secular decline. BFSI wealth/asset-mgmt units now face existential pressure to build proprietary AI models or lose client AUM to passive/algo alternatives.
Source: Bloomberg · 2026-05-22