Artificial intelligence will reshape how asset management firms operate, but the biggest obstacle isn’t technology, it’s getting people to change how they work, according to VanEck CEO Jan van Eck.
Speaking at the Exchange conference in Las Vegas, van Eck sat down with CNBC’s Dominic Chu to discuss how AI asset management is disrupting the ETF industry’s operational foundations rather than serving merely as an investment theme.
Van Eck outlined three distinct layers firms must navigate when adopting AI: clean data, software infrastructure, and human adaptation. Most companies remain stuck halfway through the first layer.
The data challenge alone requires massive investment. Van Eck cited an industry example of a firm spending $2 billion annually for a decade just to align data definitions across different systems. Without standardized, clean data feeding into AI systems, the technology cannot function properly.
The second layer, software, is becoming cheaper as AI replaces traditional software-as-a-service models, with costs potentially dropping as much as 90%, van Eck said.
But the third layer represents the real challenge. Human resistance to workflow changes, not technological limitations, creates the biggest barrier to AI adoption, according to van Eck.
AI Asset Management Reshapes Workforce
The workforce implications are already reshaping hiring decisions. While AI workflows are taking over entry-level data entry and paperwork, VanEck continues funding internships, despite higher short-term costs to protect its long-term talent pipeline, van Eck said.
In a world where AI handles routine analysis, curiosity and open thinking will become the most valuable employee traits, according to van Eck. To drive adoption, he suggested aligning compensation with AI use. Departments that develop effective AI agents should receive higher bonuses.
The most immediate disruption for ETF issuers centers on how investors discover information. Van Eck said AI research tools could help the firm double its assets from individual investors from 20% to 40% as people feel more empowered to research without advisors.
Marketing is evolving into what van Eck called a “content war,” with firms competing to ensure that when investors ask AI assistants like Gemini or Claude for investment research, those tools pull information from their websites rather than competitors.
On blockchain tokenization, van Eck offered a reality check. While any asset can be tokenized, the technology remains meaningless without efficient trading. The ETF structure’s liquidity and tax efficiency remain superior, regardless of whether AI or blockchain powers the underlying infrastructure.
For more news, information, and strategy, visit ETFDB.
