Institutional Investors Are Fast-Tracking Data Strategies to Unlock AI-Driven Growth, State Street Survey Reveals
- Majority of firms expect to realize investment, revenue, and efficiency gains from holistic data strategies and generative AI within two years
- Custodians seen as critical partners in transforming back office data into front office insight
BOSTON, June 26, 2025 – State Street Corporation (NYSE: STT) today announced the results of its latest global institutional investor survey, Capturing the Data Opportunity in an Era of Uncertainty, which uncovers how institutional investors are transforming their data strategies and embracing generative AI (Gen AI) to drive performance and innovation[1].
The survey, the largest of its kind in the industry, gathered insights from 920 asset managers, asset owners, wealth managers, and insurers across North America, Europe, the UK, APAC, the Middle East, and Latin America. It builds on State Street’s 2023 benchmark study, Capturing the Data Opportunity: Institutional Investors in an Age of AI, and was conducted between the end of 2024 and early 2025.
“Institutional investors are at a pivotal moment in their data transformation journey,” said Joerg Ambrosius, president of Investment Services (IS) for State Street. “What our research confirms is that a holistic data strategy is no longer a competitive advantage—it is becoming a baseline expectation. The firms that are aligning their front, middle, and back office data capabilities are the ones best positioned to unlock meaningful value from technologies like generative AI.”
Key Findings:
- Holistic Data Strategies on the Rise: 26% of C-suite respondents report having a holistic data strategy in place. Nearly three-quarters of those without one expect to implement it within two years.
- High Expectations for Impact: Nearly all respondents anticipate improvements in investment returns, revenue growth, and operational efficiency. Around 10% expect gains exceeding 50%, while more than half forecast improvements between 10% and 40%.
- Gen AI as a Front Office Catalyst: 61% of respondents see Gen AI delivering the most value in defining investment objectives today. In the next 2–5 years, 47% expect Gen AI to be most impactful in product development and strategy selection.
- Custodians as Strategic Partners: Nearly one-third (32%) of respondents are prioritizing the use of back office data to generate competitor intelligence and market insights. Firms highly satisfied with their custodians are significantly more likely to leverage this data for front office priorities (74% vs. 65%).
“The role of the custodian is evolving rapidly,” said Chris Rowland, head of Custody, Digital and Fund Services Product for State Street. “As this research shows, clients are increasingly looking to their service providers not just for operational support, but for strategic insight. State Street and others who can harness back office data to inform front office decisions will be the partners of choice in the next phase of institutional innovation.”
Click here to download the full report.
About State Street Corporation
State Street Corporation (NYSE: STT) is one of the world's leading providers of financial services to institutional investors including investment servicing, investment management and investment research and trading. With $46.7 trillion in assets under custody and/or administration and $4.7 trillion* in assets under management as of March 31, 2025, State Street operates globally in more than 100 geographic markets and employs approximately 53,000 worldwide. For more information, visit State Street's website at www.statestreet.com.
*Assets under management as of March 31, 2025 includes approximately $106 billion of assets with respect to SPDR® products for which State Street Global Advisors Funds Distributors, LLC (SSGA FD) acts solely as the marketing agent. SSGA FD and State Street Global Advisors are affiliated.