The evolution of AI in the investment world from 2020 to 2030

As we move through 2025, I can’t help but reflect on how much artificial intelligence has reshaped the investment world over the past five years and look ahead to 2030. The rapid pace of change has been staggering, and it’s clear that AI is fundamentally altering how we approach the entire investment lifecycle.

The rise of AI in investing between 2020 – 2024

Growing awareness, but measured adoption

Between 2020 and 2024, public awareness of AI skyrocketed. With generative AI tools like ChatGPT, Claude, and Gemini becoming widely accessible, it’s no surprise that most people now recognise AI’s potential. However, within investment firms, adoption has been more cautious. While large companies embraced AI early on – 68% of them implementing at least one AI technology – many private equity and venture capital firms took a slower approach, carefully evaluating AI’s capabilities before fully integrating it into their operations.

Portfolio management became smarter, but not perfect

During this period, AI-driven portfolio management became significantly more sophisticated. Data-driven decision-making, automation, and predictive analytics allowed investors to optimise portfolios more efficiently than ever before – it is no longer the preserve of quants or data experts. However, AI in investing is still evolving – while systematic investment strategies are becoming more accessible, there’s still room for refinement. The real shift will come as AI continues to integrate with other investment levers like ESG factors, helping firms create both financial and ethical value.

The future of AI in investments: 2025 – 2030

The acceleration of generative AI

AI is developing faster than most firms can implement it. Over the next five years, we’ll see companies across all sectors, from software engineering to marketing and sales, aggressively adopting AI-driven innovations. The investment world is no exception – those who move quickly to integrate AI into their processes will gain a competitive edge.

The emergence of agentic AI

One of the most exciting developments on the horizon is agentic AI – autonomous systems capable of complex decision-making. These AI-driven experts will go beyond simple automation, handling intricate tasks in real-time. Imagine AI agents actively managing a diversified investment portfolio, analysing financial trends, industry movements, and even social sentiment to make precise, data-backed decisions.

The implications are huge. With AI expected to grow at a 36% annual rate from now until 2030, firms that fail to embrace these advancements risk falling behind. The next 12-24 months will be crucial as businesses either adapt or get left behind in the wake of AI-powered competitors.

AI-enhanced portfolio valuation and management

By 2030, AI will be a key player in portfolio valuation, with up to 25% of firms using AI to augment portfolio valuations over the next five to seven years. This will fundamentally change how investors assess opportunities and risks, making due diligence more efficient and reliable.

Greater collaboration between machines and humans

The future isn’t about AI replacing people – it’s about enhancing human capabilities. Investors will need to shift their approach, upskilling in AI strategies and understanding how to integrate AI within their firms. In fact, 77% of large companies plan to tackle the emergence of AI through upskilling their employees to work more effectively alongside machines in the lead up to 2030.

At twisted loop, we see this first hand. We advise our clients to adopt a ‘Human+’ approach, where AI amplifies human decision-making rather than replacing it. C-suite executives who embrace this mindset will drive more innovation, efficiency, and strategic growth within their firms.

The road ahead for investors

AI as a value-add for portfolio companies

Investors won’t just adopt AI internally – they’ll actively seek ways to embed AI within their portfolio companies to unlock new value. Whether through enhanced analytics, operational efficiencies, or customer insights, AI will play a central role in scaling businesses.

Transforming investment processes

AI is set to revolutionise deal sourcing, due diligence, and investment management. By automating time-consuming tasks, investors can focus on high-value activities like relationship-building and strategic planning. The firms that fully integrate AI will be the ones leading the charge in the next decade.

The investment landscape is on the brink of a revolution

Looking ahead, one thing is certain: the investment world is undergoing a profound transformation. Firms that embrace AI not just as a tool but as an integrated, strategic force will be the ones shaping the future of investing. The next five years present an unprecedented opportunity – adapt now, or risk being left behind.