The CFA Institute Research Foundation has published the Handbook of Artificial Intelligence and Big Data Applications in Investments for c-suite executives, boards, knowledge engineers, investment and technology professionals, regulators and students.

The look at how asset managers are using artificial intelligence (AI) and big data technologies to augment the investment process also covers the key technologies in use today, discusses the role of AI and big data in finance, including ChatGPT and its implications for investment management.

“The industry’s needs have grown from asking for proof that AI and big data work, to asking for an action plan that can provide support to firms’ strategy as machine learning methodologies rapidly become mainstream,” says the CFA Institute’s director of research, Larry Cao. “There is no single best operating model for data science integration that fits all asset management firms. Technologies must be customized to fit organizational culture, structure, core value proposition, strategic prioritization and budgeting methods.”

In the handbook’s first release (part one was published March 29, with part two scheduled for release in April), practitioner contributors scrutinize the latest data science techniques. “Much of what is unveiled is at the same time surprising and hidden in plain sight,” Cao states in the book’s overview.

Margaret Franklin, president and CEO of the CFA Institute writes that the institute has consistently advocated for AI and human intelligence together as the winning formula for successful financial institutions in the future. This, she says, “does require a reimagination of corporate culture and, indeed, the skill sets required among teams to map this evolution.” She adds that much of this work remains in the early stages throughout the industry.

“As artificial intelligence and big data become increasingly integrated into the investment process, we see this as an opportunity to ensure that those within the industry are well equipped to evaluate and incorporate these factors properly.”