Unlocking Insights and Opportunities with NLP in Asset Management

What You Need to Know 

In research contributed to the CFA Institute Research Foundation’s Handbook of Artificial Intelligence and Big Data Applications in Investments, AB’s data science experts look at the potential for big data and data science in asset management. The white paper covers wide-ranging topics—from a decision-making framework to natural language processing applications and the business and cultural aspects of harnessing data science. 

Introduction 

A confluence of events is affecting the asset management industry, forcing industry participants to rethink their competitive positioning and evolve to survive in the new world order. Geopolitical, regulatory, technological, and social trends are upending long-held norms, and the status quo is likely an untenable option for many firms. These forces are creating a host of challenges for existing players and presenting new opportunities for emerging firms. We discuss some of the key challenges affecting the active management industry in this new environment. While our list is not meant to be exhaustive, we focus on the main trends that will drive the adoption of text mining techniques in the coming years. We also provide the motivation for firms to leverage natural language processing (NLP) to capitalize on these trends.

Additional Contributor

Yuyu Fan, Senior Data Scientist, AllianceBernstein