Dutch Authority for the Financial Markets finds AI adoption rising in Dutch asset management while governance and ethics lag

The Dutch Authority for the Financial Markets has published research on how artificial intelligence is being used in the Dutch asset management sector, concluding that adoption is increasing while policies and internal arrangements are not keeping pace, with associated risks growing alongside use. Asset managers are using AI for activities including analysis, price forecasting and improving trading strategies, but many firms are investing little or have no dedicated budget, even as most expect spending will need to rise in coming years to keep up with rapid technological change. Firms see near-term benefits mainly in faster, more efficient work, improved data processing and better internal processes, with potential longer-term gains in portfolio decisions and deeper market analysis; transparency to investors about AI’s role is described as necessary. The report highlights risks including poor data quality, algorithmic bias, limited explainability and reliance on a small number of technology providers, alongside preparedness gaps: a quarter of firms have no policy on employee use of AI, the share is more than two thirds for generative AI, and more than half lack an ethics manual or code of conduct that specifically addresses AI. The AFM calls on the sector to assess whether governance is adequate, including setting clear policies, ensuring data quality, performing careful supplier due diligence and using explainable, controllable models.