This year’s InvestOps USA event presented a prime opportunity for the industry to engage in extensive discussion, collaboration, and knowledge sharing. Over three days, experts tackled the pressing challenges confronting buyside firms. Across panel discussions, keynote addresses, and fireside chats, key themes surfaced, offering insights into the common trends of the industry in 2024.
Operational efficiencies reign supreme
As anticipated and echoed in the WBR Insights Report, shared before the event, operational efficiency is the top strategic priority for firms in 2024. Whether focusing on the front, middle, or back office, or contemplating operational challenges, technological advancements, or AI integration, the industry's focus remains on enhancing cost-effectiveness, streamlining processes, and maximizing operational efficiency.
Improving operational efficiencies goes beyond processes and systems; it also considers employee optimization. While many firms view employee costs as fixed, it was noted that inefficiencies often lurk within existing tasks and tools. Understanding how employees allocate their time enables firms to look at opportunities for streamlining specific tasks to improve workforce productivity. When looking at high volume, highly repetitive processes with lower value output, firms are outsourcing. This allows employees to focus on those high-value, bespoke processes, and tasks where that human element is needed.
The inevitable rise of automation
Automation was also a prevalent topic among attendees, with many actively exploring its potential and allocating budgets accordingly. Still, firms are grappling with the most effective deployment strategies. During a session led by Xceptor titled "Automation and Process Consolidation," participants discussed concerns on the extent to which automation should be pursued before experiencing diminishing returns.
While acknowledging automation's transformative potential, firms are navigating the complexities of implementation, including regulatory considerations. Kelly Branco, CFO/CCO at Tremblant Capital, emphasized the importance of rigorous due diligence on service providers and counterparties, taking into account SEC guidance. Others stressed the necessity of piloting automation initiatives in controlled environments, with thorough expert evaluations to assess real-world benefits.
AI: Integral to modern operations
Reflecting on this year's conference, it's evident that discussions around operational processes, technology adoption, and automation invariably intersect with AI. However, panelists made the important distinction that AI is not Automation and Automation is not AI. Industry stakeholders, while cautiously optimistic, are adopting a deliberate and conservative approach to AI integration. Selecting core AI use cases and conducting comprehensive evaluations are deemed essential steps in this journey.
Data quality remains paramount
InvestOps 2024 served as a testament to the industry's unwavering commitment to operational excellence, technological innovation, and data-driven decision-making as firms navigate the evolving landscape.