By Chris Cattermole, Commercial Director
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Across the alternative investment space, AI is no longer viewed as an emerging trend – it’s becoming a strategic imperative. At recent events and in client meetings, we have noticed a clear shift in how firms are engaging with AI. The interest is real, and the potential is significant, particularly for firms struggling with complex data environments and growing reporting demands.
A recent Boston Consulting Group survey reflects this shift. It found that 72% of executives believe generative AI (GenAI) will have a significant or transformative impact on their organisation within three to five years. Yet only 16% have defined a clear strategy to implement it. This gap between ambition and execution is where many firms now find themselves.
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The challenge: Trust, security and strategy
While the enthusiasm for AI is strong, the challenges around adoption are equally clear. One of the most pressing concerns is trust – particularly in relation to data security. For firms managing sensitive financial data and regulatory scrutiny, the idea of feeding that data into public or poorly secured AI platforms is a non-starter.
Business leaders have shared fears about data leakage, especially with GenAI models. The worry is not just about external threats, but about how easily data might be exposed through unsanctioned use or poorly governed systems. These concerns are not unfounded, and they must be addressed with credible, enterprise-grade solutions.
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Secure AI deployment within a controlled environment
At Portfolio BI, we’ve prioritised data security from day one. Our AI tools, including PBI Insights, are deployed within secure Azure containers – fully controlled by the client. This means their data never leaves their environment, never touches public models, and remains protected by their own security protocols. It’s a closed-loop approach designed specifically for financial services and alternative investment firms.
Security is only part of the equation, though. Building trust in AI also requires transparency and education. It’s not enough to provide tools – we need to help teams understand how they work, what problems they solve, and how they can enhance human capability rather than replace it.
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Practical use cases: From investor reporting to legal automation
One of the most compelling applications of AI in this space is investor reporting. Our solution, PBI Insights, has been trained on financial services terminology and is designed to allow users to interact with complex datasets through a conversational interface. Ask a question and get a response in text or visual format, instantly. No waiting for custom reports or analyst availability.
For many clients, this solves a growing problem: the need to respond quickly to granular investor queries – often involving legacy data stored in fragmented formats, including SharePoint. PBI Insights brings structure to this chaos, unlocking hidden value in existing data.
Meanwhile, credit and private debt funds face their own challenge: managing unstructured legal documentation. Tools like PBI XtractIQ help turn dense agreements into structured workflows, dramatically reducing manual input and improving data quality across legal and operational teams.
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Aligning innovation with compliance: Meeting DORA requirements
Of course, innovation must go hand-in-hand with compliance. As regulatory frameworks evolve – particularly in the EU and UK with the rollout of the Digital Operational Resilience Act (DORA) – alternative investments managers are under increasing pressure to demonstrate operational resilience and cyber risk preparedness.
Through our partnership with Drawbridge, Portfolio BI provides clients with practical support in meeting DORA requirements. This includes internal risk assessments, cybersecurity checklists, and the tools needed to build resilient operational frameworks that meet regulatory expectations.
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The path forward: Secure innovation, strategic growth
Alts managers are at a crossroads. The demands for transparency, speed and precision are intensifying – and the only sustainable way forward is through secure, scalable and intelligent platforms. But adopting AI doesn’t mean compromising control. With the right safeguards and guidance, firms can innovate responsibly and confidently.
At Portfolio BI, we see our role as enabling that journey. By combining robust technology with deep industry knowledge, we’re helping clients not only adopt AI, but do it right.
Because the future of fund operations won’t be driven by technology alone. It will be defined by how well firms align that technology with the needs of their people, their processes, and their investors.
Learn more about PBI Insights here or get in touch to find out how we can help your business.
