Artificial intelligence is moving from pilot projects to the investment desk, with Indian mutual fund houses deploying AI tools to sharpen research, risk control and execution. Managers are using models to scan filings, earnings-call transcripts and alternative data for early signals on revenue, pricing power and governance. Natural-language and vision systems now map sentiment, detect anomalies in cash flows and inventory, and track supply-chain shifts, while optimisers suggest portfolio tweaks within mandate and risk limits.
On the trading side, AI improves liquidity discovery, slices orders to cut market impact and benchmarks costs. Risk teams run scenario generators that stress portfolios for macro shocks, climate events and factor rotations, feeding alerts into daily oversight. Adoption is rising across equity, quant and hybrid funds, but leaders stress human-in-the-loop controls: explainability, data lineage, robust backtesting and SEBI-compliant audit trails. Key risks—data quality, model drift and overfitting—remain, yet firms expect AI “copilots” to become standard across research, dealing and compliance.
