Schroders private markets unit has been using for one year a Generative AI Investment Analyst (GAiiA) and now will also implement a virtual investment committee agent
London-listed Schroders Capital, a private markets player that has 99.3 billion US Dollars of aum, expanded its advanced AI tools and implemented a virtual investment committee agent for further strengthening the decision-making process (press release).
Schroders Capital data science team developed such a proprietary technology for supporting the Generative AI Investment Analyst (GAiiA) that launched in June 2024 (press release). The latter tool allows Schroders Capital to efficiently sift through large amounts of data, accelerate due diligence and generate first drafts of investment summaries. Since its introduction, GAiiA helped the private equity team for the generation of investment committee memoranda first drafts and for responding to specific requests related to target during the due diligence phase. GAiiA already assisted in more than 40 investment cases and Schroder’s primary and secondary markets teams use it for all types of private equity investments.
Professionals retain full responsibility for reviewing the results that artificial intelligence generated, integrating the analysis, providing their own risk and opportunity assessment and finalising the documentation before making any investment decision. Although artificial intelligence tools support the process, only experienced professionals make investment decision at Schroders Capital.
The new virtual agent of the investment committee will interact with GAiiA reviewing its preliminary documents produced and providing further insights on topics such as industry dynamics, business model considerations and risk factors based on Schroders Capital’s historical investment data.
The investment team will assess and develop the feedback from the virtual agent and ask GAiiA to produce an improved version of the original analysis that the professionals will review. With the support of these new tools, Schroders Capital’s experts can conduct more precise, consistent and detailed analysis, with the aim of appraising even more investment targets than ever before.
The investment committee’s virtual agent and GAiiA passed extensive internal tests. Schroders Capital will keep developing and improving the capabilities of both tools while investing in the continued training of its team’s skills, ensuring that advances in artificial intelligence go hand in hand with the deep expertise and judgement that underpin the firm’s investment philosophy.
Nils Rode, the Chief Investment Officer of Schroders Capital, said: “The launch of the new virtual investment committee agent is an important milestone in the evolution of our firm. The integration of this innovative system ensures even greater rigour in Schroders Capital’s investment decision-making process. The implementation of GAiiA across all types of private equity investments and planned future enhancements support our mission to elevate our investment analysis to a new level, providing our clients with access to cutting-edge expertise and our employees with the development of new skills for an AI-driven future of work.”
