How can AI help integrate ESG criteria into investment decisions

LONDON, UNITED KINGDOM, November 1, 2021 /EINPresswire.com/ -- In an article published on Business Reporter, Hamsa Bharadwaj, Founder and CEO, Pecten talks about the factors that have changed the game in investment management, as well as how technology can help overcome new challenges. With returns narrowing and an exponentially growing amount of data to manage, new, technology-driven approaches need to be found to transform asset and wealth management. There is an emerging trend of divestment from so called sin stocks to ethical investment. However, in order to ensure that these complex non-financial criteria prevail in investment management, we need ML (Machine Learning) and NLP (Natural Language Processing) tools. Bharadwaj explains how AI has the potential to transform the whole investment research and decision-making process and thereby enable asset and wealth managers to concentrate on other tasks such as portfolio management, client relationships and business strategy.

Unlike humans, AI is capable of processing the millions of data points needed to get deep, actionable insights regarding which green and ethical investments bring the highest yields. To make more informed investment decisions in this transforming environment, ESG (Environmental, Social and Governance) data needs to be combined with generally detached fundamental, quant, macro and technical data, while AI deployments can help find the needle in the haystack of unstructured data. Investment managers will only be able to meet future challenges if current research processes, which are inaccurate, fragmented and expensive, get replaced with a synthetised approach integrating legacy data sources with alternate and digital data.

To learn more about how AI can empower asset and wealth management, click here.

About Business Reporter

Business Reporter is an award-winning supplement published in the Sunday and Daily Telegraph, City AM and online, delivering news and analysis on issues affecting businesses to a global audience. It also hosts conferences, debates, breakfast meetings and exclusive summits.

www.business-reporter.co.uk

About Pecten

Pecten offers a suite of products and services powered by Artificial Intelligence that effectively combines alternative datasets with technical and fundamental datasets in order to generate context- based investment advice in real-time.

https://www.linkedin.com/company/pecten-labs/

Press
Business Reporter
+44 20 8349 4363
email us here