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Part of Investors are seeking ways to modernize asset management by integrating artificial intelligence into their operations.

How could the increasing use of AI in asset management affect Nasdaq?

Possible What happens if… A possibility worth considering, not a forecast.

AI adoption may increase trading volume and speed on Nasdaq The trend of asset managers integrating AI into investment processes could lead to increased activity on exchanges like Nasdaq. Mercer reported that 91 per cent of asset managers surveyed plan to increase their use of AI-based portfolio management tools this year. Given that Mercer's selling activity is known to influence market dynamics tracked by Nasdaq, this shift toward automated, AI-driven trading could increase the volume and speed of transactions on the exchange.

Reported by 1 independent outlet Written Sunday
Effect
Mild positive
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When
Over the long term
The story
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How it reaches Nasdaq

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The facts so far

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  • 91 per cent of asset managers surveyed by Mercer reported plans to increase their use of AI-based portfolio management tools this year.thehindubusinessline.com
  • Fewer than half-a-dozen ETFs, collectively managing only about $30 million of the ETF industry's nearly $17 trillion in assets, rely solely on AI-powered bots.thehindubusinessline.com
  • Mercer's selling activity influences the market dynamics tracked by Nasdaq, specifically triggering selling in tech stocks.thehindubusinessline.com

Why it matters

The shift toward AI in asset management represents a fundamental change in how capital markets operate. As more funds adopt AI-powered models, the nature of trading moves from human-driven decisions to high-speed, algorithmic execution. This trend is significant because it changes the operational demands placed on market infrastructure, such as stock exchanges.

Nasdaq, as a major electronic stock exchange, relies on the volume and efficiency of transactions. If AI adoption leads to a sustained increase in the speed and volume of automated trading, it could necessitate changes in how the exchange manages data flow and transaction processing to maintain stability and efficiency.

What we don't know yet

  • What specific regulatory changes might be required to manage the increased speed of AI-driven trading?
  • How will the increased reliance on AI affect the overall stability of the market during extreme events?

Is this still moving?

No new developments lately Reached 2 outlets in its first 24 hours
Reports
2
Developments
1
Repetition
50%

What would change this answer

Regulators mandate specific limits on AI trading speed or volumeThis could dampen the potential increase in transaction volume on Nasdaq, limiting the effect of AI adoption.
AI-enhanced ETFs continue to attract billions in assetsThis would confirm the long-term trend of automated trading, making the increased activity on Nasdaq more certain.

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The full eventAsset Managers Plan Increased AI Use in Portfolio Management Everything aboutNasdaq

Brind's analysis is written by AI from the reporting linked above and can be wrong. This explainer is a possibility worth considering, not a forecast: steps marked as Brind's reasoning are not stated in the reporting. It is not investment advice; do your own research.