Technology and competition overtake regulatory changes as top concerns for asset managers

FE fundinfo,  the leading financial data company connecting the investment industry across the UK, Europe and Asia Pacific, today published its 2025 Asset Managers Report, revealing a shift in industry sentiment.

According to the findings, 53% of asset managers now identify both technological disruption, including the rise of AI, and increased competition as the most pressing threats facing the profession, overtaking regulatory changes which topped the list in 2024.

Based on insights from 100 senior asset management professionals across the UK, the report presents a market in flux. Firms are grappling with fast-paced innovation, increasing margin pressure and rapidly evolving client expectations. 46% saw fee compression as one of the main challenges over the next three years, limiting profitability and necessitating innovation from asset managers to drive a more efficient operating model.

This year, regulatory compliance concerns dropped to 37%, highlighting how firms are adapting to shifting policy landscapes while turning their attention toward the existential challenges of innovation and market saturation.

Firms are re-aligning their strategic priorities to adapt. When asked how they are tackling operational and growth challenges, the top cited methods were:

• Streamlining operations and cost structures (61%) 

• Investing in ESG and sustainable finance capabilities (56%)

• Strengthening data architecture and integration (50%) 

The commitment to data came up time and again in the research. Nearly 9 in 10 firms said they feel significant commercial pressure to deliver data updates faster and more accurately, and 91% agreed that fund data supports growth, compliance and client outcomes.

There has been a significant shift in AI maturity across the sector. In 2024, just 6% of respondents had fully integrated AI into core operations. In 2025, maturity has grown. Nearly 70% of respondents have implemented AI in some capacity - a 33% increase compared to 2024. 22% confirm broad usage and 16% state AI is now fully integrated into core business processes. Meanwhile, only 5% say AI isn’t under consideration, underscoring its growing ubiquity.

Liam Healy, CEO at FE fundinfo, said, “Asset managers are operating in a new reality. One defined not only by ever-present compliance requirements but also by the speed and scale of technological transformation. Driving positive and sustainable outcomes now hinges on a firm’s ability to reimagine their operations, respond to competition and build technology-driven foundations.”

“As AI, data and digital tools reshape how value is created and delivered, the asset management community is moving decisively toward smarter, leaner and more resilient operating models. As more technological solutions are integrated into day-to-day operations, not losing sight of access to the right data has never been more essential. Our research highlights we’re in a time of change for the asset management community, one where access to the right insights will grant the most opportunity.”

You can find the full report here: FE fundinfo - Asset Managers Report 2025