Alternative Data Budgets Surge as AI Focus Shifts to Efficiency

The survey, which captured insights from 191 global investment firms managing over $1 billion in assets, reveals a clear shift in how financial institutions measure success. While AI is firmly embedded in daily workflows, its primary contribution is organizational efficiency rather than direct performance alpha. Only 17% of respondents credited AI with enhancing actual investment returns, whereas 41% pointed to streamlined internal processes as the primary tangible benefit.

This prioritization of efficiency comes amidst growing friction regarding data integrity. One-third of buyers report a noticeable decline in source quality over the last two years, leaving the industry divided on whether AI-generated content is to blame. Despite these technical hurdles, the core driver for procurement remains unchanged: signal strength. When trials fail to convert into purchases, the lack of a discernible signal is cited by 39% of buyers as the decisive factor, far outweighing concerns over price at 25%. Neudata founder Rado Lipuš noted that while confidence in the market remains high, the coming year will likely be defined by how firms address the lingering questions of data quality and the elusive goal of AI-driven performance gains.