Innovation at a turning point: How tokenisation, AI and new investor expectations are reshaping Asset Management

At Reseo, we know that not everyone has the time to listen to every podcast episode in full. That’s why, alongside each conversation in our State of the Art series, we publish a clear, concise written summary — capturing the most important ideas, themes and insights for readers across our industry.

In this edition, we distil the key messages from our conversation with John Allan, Head of Innovation and Operations at the Investment Association, about the forces redefining investment management today — from tokenisation and AI to fund modernisation, ESG data and the expectations of a new generation of investors.

Tokenisation Enters the Mainstream

 Tokenisation has long been discussed as a theoretical possibility, but the past year marked a decisive shift toward real adoption. Several tokenised funds have now launched in the UK, demonstrating that distributed ledger technology (DLT) can serve as the shareholder register for investment funds — a development the Investment Association refers to as investment fund tokenisation.

This momentum will accelerate further as the UK prepares to issue its first digital gilt, lending legitimacy to tokenised assets within capital markets and strengthening the bridge between government issuance and the buy side.

AI: Incremental Gains Today, Transformational Potential Tomorrow

AI now touches nearly every part of the investment value chain. The gains currently visible are incremental — automating tasks, improving accuracy, speeding up processes — but the longer-term potential is far more significant. Firms recognise they must experiment proactively, even as they navigate varying regulatory approaches across the EU, US and UK. The UK’s principles-based stance creates uncertainty but also offers the freedom needed to innovate.

ESG and the Data Challenge

While enthusiasm for ESG remains strong, inconsistent measurement frameworks and data reliability issues continue to challenge the industry. With multiple methodologies and definitions competing in the market, firms still struggle to translate ESG information into decision-useful insights. More standardisation is needed before ESG data can fully support long-term investment strategies.

The Rise of the Digital Investor

A generational shift is also reshaping innovation priorities. Digital-native investors expect immediacy, transparency and intuitive digital experiences, often comparing the ease of buying crypto with the friction of investing in regulated funds. To respond, the Investment Association’s Investment Fund 3.0 initiative aims to modernise fund structures by improving liquidity, accelerating settlement, removing paper and making fund interactions more intuitive.

Where Firms Should Focus Next

As innovation accelerates — from quantum technologies to satellite-derived data — firms must be selective about where they invest their resources. Successful organisations will treat innovation as a strategic pillar rather than an optional add-on, embedding technology awareness across the entire board rather than relying on a single specialist. They will allocate meaningful budget to experimentation, accept that some initiatives will fail, and learn quickly from those that succeed. And they will increasingly look beyond their own walls, partnering with fintechs and external innovators to solve operational challenges faster and more efficiently. In a landscape where the pace of change is accelerating, firms that adopt this mindset will be best positioned to navigate what comes next.

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