What’s Next for $145 Trillion in AUM?

The global asset management industry is a behemoth — with a staggering $128 trillion in assets under management (AUM) in 2024 and a forecasted rise to $145 trillion in 2025. But behind the sheer scale lies a field that’s undergoing profound disruption.

Yes, the incumbents still hold the lion’s share — 20 major firms control nearly 44% of global AUM — but a new wave of challengers is reimagining the rules of the game.

Let’s explore what’s shaking up the world of asset management and how emerging technologies like agentic AI are poised to reshape the industry’s future.

The Disruptors Are Here — And They’re Hungry

A mix of new players and strategies are carving their way into the industry:

• Alternative asset managers (e.g. private equity, hedge funds) are drawing investor interest with innovative, risk-adjusted products.

• ETFs are gaining ground, offering passive exposure to markets at significantly lower fees.

• Quant funds use algorithms instead of instinct, scaling decision-making with data.

• Fintechs are making wealth management more accessible — for retail and emerging investors alike.

• Investment platforms are becoming the utilities of finance: low-cost, plug-and-play, and channel-agnostic.

This isn’t just competition — it’s a structural shift. Armed with tech, agility, and a client-first mindset, these newcomers are forcing traditional players to adapt or lose relevance.

The Foundations Are Shifting

The asset management sector may be massive, but it’s not immune to strain. Here’s where the cracks are showing:

🔻 Margin Compression:
Costs jumped 4.3% in 2023, while revenues barely grew at 0.2%. With fee pressure rising and operational inefficiencies lingering, profitability is under siege.

⚖️ Regulatory Overload:
New regulations like MiCA, DORA, and ISO 20022 are rewriting compliance playbooks. In the US alone, the SEC passed 42 new rules in 2023 — a regulatory blitz forcing firms to rethink their operations.

🖥️ Legacy Tech Debt:
Roughly 70% of asset managers still rely on dated systems. Worse, 60–80% of IT budgets are spent just to keep these systems running. This is not transformation — it’s stagnation.

💸 Demand for Diversification:
Clients want access to digital assets, tokenised products, and alternatives that were once reserved for institutions. Innovation in asset classes is no longer optional — it’s expected.

Enter Agentic AI: More Than Just Smart

If generative AI can draft emails and analyse reports, agentic AI can do much more — it can act.

Unlike traditional models, agentic AI systems are designed to operate autonomously. They:

• Set and pursue goals

• Interact with multiple systems in real time

• Adapt to changing environments

• Orchestrate tasks across platforms

Think of it as a new breed of digital workforce — one that works around the clock, learns as it goes, and integrates seamlessly into legacy ecosystems.

At Experion, we recommend using our CARE Framework to guide your adoption journey:

• Complex: Focus on challenges that need sophisticated, multi-variable solutions.

• Alarming: Prioritise areas like compliance and fraud detection.

• Repetitive: Automate high-volume, rules-based operations.

• Ethical: Embed transparency, fairness, and accountability into every AI deployment.

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Real-World AI, Real Business Impact

Where can agentic AI help asset managers today?

Here are some practical use cases being adopted by forward-thinking firms:

• Client onboarding powered by conversational micro-agents

• Portfolio rebalancing handled dynamically via AI with risk oversight

• Regulatory compliance automated through rule-checking bots

• Performance reporting auto-generated and customised for clients

• Fraud monitoring enhanced with behavioural and pattern-based AI detection

And the best part? These agentic systems don’t require a full tech overhaul. They integrate via APIs and orchestration layers — allowing for modular, non-invasive deployment.

The Platform vs. Agent Tug-of-War

Will AI replace legacy platforms? Not just yet — but we’re getting close.

Traditional platforms still run core functions like trade execution and compliance. But as AI becomes cheaper to develop and smarter to operate, firms may start building in-house agents to reduce dependence on third-party systems.

That’s a serious cost-saving lever — cutting down licensing, infrastructure, and vendor lock-in. In response, many software vendors are embedding AI into their own suites to stay competitive.

What we’re witnessing is a rebalancing of power between platforms and purpose-built agents.

Looking Ahead: It’s Not Just About Assets Anymore

Asset management is no longer just about managing wealth — it’s about managing change. With agentic AI, firms gain the tools to drive that change, not merely survive it.

Especially for UK-based firms, now is the time to evaluate how agentic AI can:

• Modernise legacy systems without total replacement

• Reduce compliance costs through automation

• Improve investor experience via real-time personalisation

• Unlock new markets through scalable intelligence

In a world of increasing complexity and expectations, the edge will belong to those who act — and let their systems act, too.

One micro-agent at a time.

About Experion Technologies

Experion Technologies is a global digital transformation and product engineering leader, with 11 global offices and over 500 clients served across 37 countries. Recognised by Frost & Sullivan, Clutch, and Everest Group, and an Inc. 5000 honouree for 7 consecutive years, we specialise in financial services, healthcare, retail, and logistics tech. Our recent partnership with EQT-backed Indium further expands our innovation footprint.