Implementing AI for better investor outcomes

Today’s investors are awash in information, deluged by company financials, sell-side commentary, earnings transcripts, news stories, and more. The sheer quantity and velocity of data available can be overwhelming, making it challenging for even the most seasoned investment professionals to separate valuable insight from background noise.

It was against this backdrop that we set out to build a solution to help support our investment teams, simplifying workflows and unlocking the potential of artificial intelligence (AI) for faster and deeper insight. The result is AI Research Assistant, our proprietary AI platform designed to act as a strategic complement to our teams’ existing expertise. With advanced natural language processing and machine learning capabilities, our AI tools can filter, extract, and consolidate relevant data across a spectrum of sources. Tasks that once took hours can now be completed in seconds, freeing our investment team to focus on deeper analysis and strategic investment decisions that drive value for our clients.

Central to the development of the platform is a commitment to a human-centered approach tied to our responsible AI principles, which are in place across the broader organization. Manulife Financial Corporation has invested in AI technology for nearly a decade, and Manulife was recently recognized as the #1 life insurance company in the inaugural Evident AI Index for Insurance.

Empowering our investment teams with AI

We’re proud to say that every AI solution that we’ve implemented to date has originated from the investment team, rather than through top-down mandates.

Our analysts and portfolio managers share opportunities in their process where AI may be helpful. AI tools are then co-developed with the AI team through rapid, iterative pilot programs on the front line, with our technical specialists embedded directly within investment teams. 

Our bottom-up process: creating the right tool for the job

This fast-prototype model offers the flexibility required in a field characterised by relentless evolution and where obsolescence can occur rapidly. Responsibility for evaluating and approving AI-driven tools is shared between our investment professionals and technical experts, with the same scrutiny applied to internally developed tools as to external solutions. The results of this approach speak for themselves, with more than two-thirds of our public markets investment personnel now using AI in their processes.¹ These tools are now integral to research and analysis, providing efficiency and targeted insight while maintaining the integrity of established investment workflows.

A framework for responsible implementation

The capabilities that AI tools can bring to the investment industry are incredibly powerful and exciting, but we believe it’s vital that we navigate this evolution thoughtfully and responsibly. That’s why governance, ethics, and accountability are a critical part of our approach, and why we’re committed to designing and operating systems that are safe, ethical, and adhere to our company-wide responsible AI principles.  

From the outset, we believed that our AI program should be shaped and led by our investment team, with the AI development team providing technical support. As a result, ownership, control, and decision-making for AI initiatives reside within investments, ensuring proper alignment with our core fiduciary responsibilities. This foundation is critical: While AI presents significant opportunities, it remains subordinate to the judgment and accountability of our portfolio managers and analysts.

Furthermore, our emphasis on collaboration and transparency extends beyond the investment team to include stakeholders from risk, compliance, model risk, and AI governance. These teams are engaged at every stage, from ideation to prototyping and eventual deployment. End users such as analysts, portfolio managers, compliance, and risk professionals are part of beta testing and review, with changes and feedback carefully documented. As AI becomes more complex, our governance is evolving alongside it, ensuring we protect both our clients’ interests and our own standards.

Every tool is reviewed through robust protocols, just like external vendor solutions. Rigorous peer review, risk checks, and documented processes ensure that AI enhances our research without eroding the foundation of thoughtful, accountable investment management. In this way, AI enables more insight, but never at the expense of professional integrity.

Our approach is built on one core belief: Technology should amplify people’s strengths, not replace them. Critically, our AI implementations are designed as assistants, not decision-makers. Human investment professionals retain ultimate responsibility for all investment decisions, ensuring that we can benefit from the potential of AI while minimizing exposure to downside risks. Automation frees time from routine tasks such as data aggregation and document review, but it’s human skill that has the power to turn this information into real value for clients. Our teams—drawing on years of experience and fiduciary responsibility—retain the final say on every portfolio move.

Our investment approach remains unchanged: Data informs analysis. Analysis leads to insight, and insight can drive outperformance. AI accelerates this process and allows us to work with significantly more data than was previously possible, but the decision-making remains firmly with our people, and we continue to rely on their experience and expertise. 

Maximizing human-centered AI

In an industry driven by data, it’s become increasingly difficult to identify meaningful, actionable information amid the noise. That’s where AI can help, transforming how we handle that data, streamlining its integration, and resulting in quicker, more efficient knowledge sharing across teams. 

We regard generative AI as more than simply the latest technological breakthrough; for us, it’s a strategic imperative. Through thoughtful and responsible implementation, AI tools can help us deepen our understanding of risks and opportunities while scaling data integration and alignment within our fundamental portfolio construction processes.

At Manulife Wealth & Asset Management, the careful integration of AI means delivering value for clients, maintaining decision-making discipline, and strengthening our position as trusted partners—today and for what comes next.