Active asset management is being redefined by breakthrough artificial intelligence solutions, with AI-powered tools emerging as a solution to inefficiencies in capital markets, according to Bin Ren, CEO of Sig Tech.
At DLA Piper’s second Annual Global Digital Forum, Ren highlighted the growing role of AI agents and open-source large language models (LLMs) in investing.
He pointed to a major shift towards passive investment: “The market has become less efficient in several important ways.
“For example, tens of trillions of dollars are flowing into passive investment funds, which, by definition, do not contribute to equity price discovery. As a result, active investing is dying.”
The number of stock analysts at the world’s 15 largest banks has declined from 4,600 a decade ago to approximately 3,000 in 2025, a decrease of over 30%.
Ren claims that AI agents are the suitable solution to this dilemma and can support investment analysis, investigation, and eventually decision-making.
Unlike simple chatbots, AI agents powered by LLMs can learn iteratively from data and use external tools without explicit programming. They can improve by observing examples, making them flexible and capable of capturing expert knowledge in a way that traditional systems do not.
“Often, people equate LLMs and generative AI with chatbots, however, AI agents are a lot more than just chatbots,” Ren said.
“They are powered by an LLM, which is like the brain. It can reason, learn and can use tools.”
Ren explained that large UK institutions are already using these innovative technologies to bridge efficiency gaps and improve their investment processes. He asserted that regulation is likely to follow these models and give greater clarity about AI’s role.
