AI driving new era of investor engagement

Asset managers risk focusing on artificial intelligence before fixing the data foundations needed to support it, according to Kurtosys chief executive Lee Godfrey, who argues that investor engagement is emerging as a key competitive differentiator across the industry.

Speaking to Capital Pioneer following Kurtosys' partnership with JP Morgan Asset Management, Godfrey said advances in automation, data management and AI are enabling firms to move beyond standardised reporting towards more personalised investor experiences.

Godfrey, who previously held senior roles at KNEIP and Intertrust before joining Kurtosys as chief executive, believes the industry is entering a period in which investor experience will become as important as operational efficiency.

Historically, reporting has largely been treated as an operational process, with investors receiving standardised documents produced through complex workflows and multiple technology platforms. Godfrey argues that approach is becoming increasingly difficult to justify as investor expectations evolve.

"Investors are becoming more demanding and more sophisticated in the information they require," he said. "Asset managers need to be able to deliver tailored reporting at scale while maintaining confidence in the quality and governance of the underlying data."

Kurtosys provides technology that allows investment firms to generate customised outputs from a single source of data, reducing reliance on manual processes while giving reporting teams greater flexibility. According to Godfrey, the objective is not simply to automate existing processes but to help firms respond more effectively to client needs.

Many asset managers still struggle with fragmented systems and multiple reporting platforms, he said, making it difficult to maintain consistency across client communications, regulatory disclosures, websites and digital channels.

"The industry has traditionally focused on delivering information to investors," Godfrey said. "Technology now creates the opportunity for a more interactive relationship, where investors can access information in the format most relevant to them and explore the data in greater depth."

The shift comes as active managers face continuing pressure on fees and performance, forcing firms to look beyond investment returns alone when competing for assets.

Godfrey argues that investor engagement remains an underdeveloped area across asset management, despite its importance to client retention.

"My niece works for Warburtons Bread. She knows more about people buying bread in Tesco than asset managers know about their investors," he said.

Artificial intelligence is expected to accelerate that change by allowing investors to interrogate portfolio information directly and consume data through a wider range of formats and channels. However, Godfrey believes many firms are placing too much emphasis on AI itself rather than the underlying architecture required to support it.

"Data architecture remains fundamental," he said. "The value of any AI capability is determined by the quality, consistency and governance of the data supporting it."

That focus on data lineage and governance sits at the heart of Kurtosys' strategy. Godfrey argues that firms should be seeking to create a single, trusted data foundation capable of supporting reporting, regulatory requirements and client communications from the same source.

For asset managers grappling with margin pressure, that can also reduce operational complexity by consolidating technology vendors and eliminating manual processes.

"Technology can help asset managers become more responsive to investor needs while reducing operational complexity," Godfrey said. "The firms that are able to combine trusted data with more personalised engagement will be better positioned to differentiate themselves in a highly competitive market."

For Godfrey, the industry's future is unlikely to be defined solely by AI. Instead, it will depend on whether firms can use technology to build stronger and more meaningful relationships with investors while ensuring the data behind those interactions remains accurate, reliable and trusted.