Second Age of AI: Hedge Funds Lag on Actual Use

A report titled “Age of AI II: Closing the gap between capability and usage,” published June 18, 2026, presents findings from a global survey of more than 100 hedge fund managers and interviews with industry leaders.

The survey found that most firms purchased AI models and software in the prior year but that day-to-day adoption and routine use lag behind those purchases. Respondents and interviewees reported a wide gap between ownership of tools and their integration into regular work.

Firms differ in how far they have moved from purchase to production. Some have placed models into regular use for data ingestion, signal generation and risk monitoring. Others have kept tools at the proof-of-concept stage or limited them to pilot projects. The report notes that possession of AI systems does not always translate into use across portfolio management, execution or compliance workflows.

Authors identify technical, organizational and cultural barriers that slow wider deployment. Report respondents cited challenges linking new models to legacy systems, defining governance and controls, and measuring how AI affects investment outcomes. Interviews with senior practitioners emphasized these issues as current priorities when evaluating AI investments.

The report profiles firms that have narrowed the gap. Those firms defined specific use cases, set adoption metrics, and involved both technology and investment staff in deployments. The study documents steps taken to move tools from testing to routine tasks and tracks where integration has progressed.

“Ownership of tools no longer equates to their use across portfolio management, execution or compliance workflows,” the report states. The authors describe the findings as a snapshot of a second phase for AI in hedge funds, one year after a widespread purchasing wave, and present the report as a baseline for managers, investors and service providers assessing how AI purchases translate into operational and investment outcomes.