AI Primer for Public Investors : From AI Awareness to AI Readiness

Overview & Synopsis

This primer examines the adoption of artificial intelligence (AI) among asset managers and institutional investors, drawing on market outreach conducted by the World Bank Group Treasury and the Bank of Korea Reserve Management Group. Findings indicate that while most leading asset management firms have established AI governance frameworks, overall adoption remains at an early stage and is focused primarily on productivity improvements through generative AI. Common applications include document data extraction, reconciliation processes, and drafting professional content. More advanced uses involve investment strategies, such as market intelligence, forecasting, scenario analysis, portfolio construction, and trading execution. The report emphasizes the importance of human oversight and highlights key risks associated with AI, including biased data, lack of model transparency, model drift, legal compliance concerns, and potential impacts on public trust. It proposes a framework for responsible AI adoption based on three pillars: vision and leadership, strategic foundations and governance, and an enabling environment encompassing data, infrastructure, talent, cybersecurity, and operational processes. The primer underscores that effective AI adoption requires institutional transformation, continuous learning, and collaboration among peer institutions.