New research indicates AI's growing ability to discern fund managers with genuine skill in generating fundamental value, amidst concerns of a potential market bubble. AI algorithms are being developed to sift through vast datasets and identify patterns indicative of skilled investment strategies. This technology could potentially revolutionise how investors are evaluated, moving beyond traditional metrics. The development and deployment of AI in fund management could lead to more efficient capital allocation and higher returns for investors. However, challenges remain in ensuring data quality, addressing expertise gaps, and mitigating cybersecurity risks associated with AI adoption. As AI evolves, fund managers who successfully integrate these technologies may gain a competitive edge.
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