Accelerating AI in the Alternative Investments landscape: Highlights from GAIM Ops Cayman 2024
- GAIM Ops Cayman is the leading global conference for alternative investment operations professionals, held annually in Grand Cayman, Cayman Islands. From 14 to 17 April 2024, the event set the stage for transformative dialogue and networking among C-Suite, government agencies, regulators, investment managers and other key industry players to discuss the future of alternative investments.
- As a recognized market leader in financial services and technology, and a premier offshore investment management practice, Deloitte Cayman Islands is a co-founder and Principal Sponsor of the conference and hosts a number of expertise-focused sessions and speakers.
- During GAIM Ops Cayman 2024, Artificial Intelligence (AI) was identified as a transformative force within the Alternative Investments landscape, that could be harnessed for accelerated growth and enhanced strategy and decision-making.
The conference’s agenda spotlighted the emerging impact and transformative potential of AI solutions in alternative investment management. During various talks, panels and discussions, there was general agreement that AI has already taken root and is a hot topic in most leadership forums. Companies have begun developing custom AI tools and applications for the finance domain to overcome the challenge that some “off-the-shelf” options may be too generalized to meet their specific requirements. It is, therefore, critical that organizations be intentional and strategic about deepening their understanding of these technologies to harness their ability to drive growth while also strengthening functions such as compliance and risk management. This can be supported with a deliberate and ongoing focus on building AI awareness, understanding and skills across all functions of the organization.
“We are still at the beginning of mainstreaming AI within alternative investment management. There are some ‘early adopters’ who have already invested heavily in AI technology and are keeping up with the pace of change, however most are starting out on their AI journey. For any organization, it’s important to engage in ongoing efforts to demystify AI, grasp the risks, and put in place appropriate policies, processes and tools to manage these risks. Deepening understanding of how this technology can be optimized and integrated with business operations will drive growth and positively impact their clients’ experience.”
– Pieta Brown, Deloitte Generative AI Leader for the Caribbean and Bermuda Countries
The use of AI within alternative investment management introduces new risks, and industry leaders discussed examples such as using AI to perpetuate fraud and mislead investors, as well as the consequences of ‘hallucinations’ and factual errors from Generative AI solutions. As the regulatory environment for AI continues to evolve, it is important for organizations to have safeguards in place that align use with ethical standards and protect the company’s reputation and future performance.
Deloitte Cayman Islands was pleased to host a roundtable discussion on Trustworthy AI focused on risk, trust and AI governance led by Pieta Brown (Director, Generative AI Leader) and joined by Dr. Alexandra Forssell (Director, Privacy and Cyber expert). Industry leaders and experts discussed compliance considerations when integrating AI, the need to re-engineer internal policies, and the importance of early engagement with clients to shape their company’s AI strategy.
Pieta Brown later moderated the Technology and Mega Trends expert panel discussion on “3 ways technology can improve fund operations,” in which Ravi Gupta, Vice President for Strategic Solutions at NAV Fund Administration Group, and Dave Murray, CCO of Invictus Sovereign, shared their perspectives on the considerations, opportunities, and risks of integrating AI into business operations. It was agreed that AI solutions do not substitute for human input and strategy but should be viewed as tools to accelerate the achievement of organizational objectives. It is anticipated that the growth of AI has the potential to create entirely new job categories and would require upskilling within existing roles to be well-equipped to apply the technology. These solutions can, and are, beginning to play an important part in operations and performance, with the current focus by many organizations being on using AI technology to boost productivity and efficiency. The decision to invest in expanding the application of AI technology across organizations often calls for an assessment of the return on investment (ROI), which can naturally be difficult to measure given the novelty of these solutions and the lack of available data on performance in new settings. However, companies should also consider the cost of doing nothing in a business environment that is increasingly embracing these technologies as powerful solutions to drive performance and maintain competitive advantage.
