2025 Survey Results on AI and Alternative Data Integration

This technical report presents the findings from Lowenstein Sandler's 2025 survey regarding the integration of artificial intelligence (AI) with alternative data in investment firms. The survey indicates a significant increase in the use of alternative data, with 90 percent of respondents currently utilizing it, up from 67 percent in 2024. The report highlights the dual nature of AI's impact, providing opportunities for enhanced research and performance while also introducing challenges such as model risk and governance issues. The findings reveal that firms are increasingly allocating substantial budgets for alternative data, with over two-thirds reporting budgets exceeding $1 million. Additionally, the report discusses the growing complexities in the alternative data market, driven by AI advancements, and the necessity for firms to implement disciplined controls and clear data provenance strategies. The survey results underscore the evolving landscape of investment strategies and the critical role of AI in shaping future market dynamics.