Investment managers working for the insurance industry are increasingly using artificial intelligence ( AI ) to guide and improve their investment strategy as spending on new applications increases, according to a new global study.

More than half ( 45% ) of investment managers, responsible for US$10.48 trillion of assets under management, believe AI will be critical to investment strategy and asset allocation within five years, with a further 48% expecting it to be of significant importance, according to a survey by Ortec Finance, a provider of risk and return management solutions for insurers, pensions funds and asset management companies.

All firms surveyed expect their investment in AI to rise, with nearly half ( 49% ) of respondents saying their organization’s budget for AI applications will rise by 75% or more over the next 12 months.

That comes on top of increased spending in the past 12 months – 90% of respondents say they have already boosted spending on AI applications over the period.

Almost all ( 99% ) currently use AI in the investment process with 91% having adopted it more than a year ago. Around a third ( 31% ) have done so for more than two years.

Around 60% say they use AI for evaluating investments, with 62% using it for client engagement and 55% using it for marketing.

When asked where AI delivers the greatest value, 41% point to investment evaluation while 21% say it has the biggest positive impact in risk management. Just one in eight ( 12% ) say AI has the biggest positive impact on reducing operational costs. Marketing and client engagement was considered most impactful by16% of respondents, with 4% citing compliance and reporting.

“AI is already being used in some form by insurers and investment managers, and looks like this will continue to grow,” says Hamish Bailey, managing director, United Kingdom, and head of insurance and investment, at Ortec Finance. “Given the strategic importance placed on the role of AI, it is crucial that companies can maximize their investments with access to appropriate tools and expertise.”

The survey, conducted in May 2025 in partnership with Pureprofile, covered 100 senior executives working in insurance asset management or in investment management firms supporting insurers. Survey respondents are located in the UK, France, Germany, Switzerland, Hong Kong, Malaysia, Singapore, and Norway.