ChatGPT turns two: why asset managers shouldn’t put all their eggs in the AI basket

By Madalena Thirsk, Capital Markets

Generative AI is revolutionising global business, and the asset management space could witness a dramatic transformation. Two years post-ChatGPT’s launch, 50% of global executives plan to budget for AI over the coming year. But relying solely on the promising technology risks losing unique voice, publishing errors, and painfully generic communication. Asset managers must balance AI’s efficiency with expertise from specialised capital markets PR agencies for accurate and novel communication.

It’s been two years since ChatGPT launched on November 30, 2022. Since then, AI has evolved from what seemed a sci-fi concept to a tool that’s reshaping industries in unimaginable ways.

KPMG research recently revealed 50% of global business executives are planning to budget for gen AI in the next 6-12 months[i]. Asset managers are no exception. Despite being one of the later players to join the generative AI (GenAI) game, the industry is expected to invest heavily in the technology moving forward. The report highlighted four key areas where GenAI could have the greatest impact, with one notable area being content generation, including client communications and compliance reports.

It isn’t too difficult to see how transformative this could be, with AI able to draft press releases, blog posts, and social media content not only with tremendous speed, but also for a fraction of the cost. It could feasibly automate a huge portion of basic content drafting, freeing up PR professionals to focus on more creative and strategic work. But it is important to remain cognisant of the risk associated with an overreliance on these exciting new tools.

There is no doubt that AI is touching every industry – a fact we have witnessed firsthand as a capital market PR agency. And while staying ahead with AI is essential, over-relying on it for content and media strategies poses dangers. In this blog, we’ll explore some of these potential pitfalls and highlight the importance of maintaining a balance between automation and personalised communication in the PR space.

Pitfalls of falling in the AI trap

• Losing your unique voice. Gen AI can churn out loads of content, but it often lacks originality. In such a competitive landscape, you can’t afford to sound like a robot! In the asset management world, where standing out and building trust with clients is everything, generic language can make your company seem unremarkable and easy to overlook.
• Now, let’s make a distinction. As outlined in BCG’s report on the AI transformation, AI is transforming personalisation by letting asset managers customise portfolios at scale – think tailoring investments to thematic preferences, like cutting back on oil and gas exposure[i]. But here’s the catch: while AI can help understand your clients better, it cannot begin to mimic the quality content and strategic messaging that a specialised capital markets PR agency offers. A good story must feel personal, creative, and distinct. That part needs a human touch.
• Getting it wrong when the stakes are high. One major issue with GenAI is it is often plain wrong. Every time you open ChatGPT, you are met with: ChatGPT can make mistakes. Check important info. There is no doubt that the information being put out for clients to read is important, especially for asset managers who are responsible for protecting clients’ investments and wealth. Even minor inaccuracies can damage credibility. Asset managers who rely on AI for facts in client communications or PR may quickly find themselves in hot water if the software misses the mark. For an industry that’s all about precision, human oversight is critical to ensure what’s being shared is 100% accurate.
• Generic content and outreach fall flat. Effective media outreach requires knowing your audience and crafting pitches that really speak to journalists’ agendas. Gen AI can help with volume, but it lacks the nuance needed to make your firm stand out. This is true for content generation that needs to resonate with the client on a more personal level and for ensuring that your content peaks the interest of journalists, most of which receive hundreds of emails a day from competitors. If your outreach feels generic or doesn’t hook them immediately, it won’t make it into the top tier titles. For firms looking to establish and maintain strong relationships with these media outlets, relying on AI alone for media relations can actually be a setback.
  

Beyond the bots: why experienced communication professionals are still key

• From generic to genuine. AI’s role in drafting basic content cannot be overlooked. On the one hand, it offers speed and efficiency, which can be advantageous. But when it comes to standing out, especially in competitive hubs like the UK – which is home to over £9.1tn in assets under management (AUM), making it the second-largest global centre for investment management after the US – more is expectedⁱⁱⁱ. Let’s look at some examples from a capital markets PR agency, where creativity can be applied across industries like asset management: 

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• Trust isn’t automated. Communications professionals are important in ensuring messaging reflects the company’s voice and resonates personally with clients – something AI cannot fully replicate. Asset managers are responsible for creating and managing diversified portfolios tailored to clients’ risk tolerance, investment goals, and time horizons. This involves carefully selecting, monitoring, and adjusting investments. With so much at stake, clients don’t just seek expert advice – they also look for a personal connection and trust with their asset managers. 
• Robots can’t build relationships. A good PR team knows how to tailor pitches, establish useful contacts with journalists, and stay up to date with what’s happening in the industry. Until AI robots are roaming the earth, building tangible relationships for your company with key top tier news outlets, human expertise remains invaluable in building relationships and securing coverage in the most relevant asset management publications.  

Gen AI has opened a lot of new doors for asset managers, making content creation faster and more efficient. But leaning too heavily on AI can dilute your company’s voice, introduce errors, and lead to uninspired outreach. When you combine AI with the expertise of a specialist capital markets PR agency, you get the best of both worlds: AI’s efficiency paired with the human creative touch.  

Key takeaways

Q1: What are the key risks of relying solely on generative AI in asset management? 
A1: Key risks include losing a unique brand voice, potential inaccuracies, and generic client outreach that lacks resonance and engagement. 

Q2: How can capital markets PR agency communication professionals’ expertise complement AI tools in PR? 
A2: Communication professionals’ expertise brings creativity, nuanced communication, and trusted client and media relationships that AI alone cannot fully replicate. 

Q3: Why is maintaining trust essential in asset management communication? 
A3: Asset managers need to ensure accurate, personalised messaging for a client base that not only seek expert advice, but also look for a personal connections and trus.