The State of Applied AI in Fund Administration
Team DwellFi
Artificial intelligence (AI) is rapidly reshaping the fund administration industry, not as a future concept, but as a present-day operational necessity. Our latest report explores how AI is being adopted across fund administration workflows to address rising complexity, increasing regulatory demands, and persistent operational bottlenecks.
The report is based on a survey conducted by Alternatives Watch, which gathered insights from senior C-suite executives at global fund administrators. Their perspectives offer a clear view into how AI is moving beyond experimentation and into real production use cases.
What the Report Covers
This report provides a comprehensive look at how AI is transforming fund administration across core operational areas, including:
- Operational efficiency: Automating manual, high-effort workflows that historically required significant human intervention
- Risk management: Improving accuracy, consistency, and anomaly detection across financial data
- Regulatory compliance: Supporting auditability, reporting, and regulatory readiness through structured data and process automation
Designed for fund administrators, investors, and private-market operators, the report highlights where AI is delivering measurable value today — and where challenges remain.
Key AI Use Cases in Fund Administration
Through in-depth analysis and real-world examples, the report outlines practical applications of AI across fund administration, including:
- Automated data extraction, processing, and reconciliation across bank statements, capital activity, and fund records
- Enhanced risk assessment and exception detection to reduce errors and manual review cycles
- Personalized investor reporting and LP communication, generated directly from validated fund data
- Streamlined regulatory and audit reporting, with improved traceability and data consistency
These use cases demonstrate how AI can act as a force multiplier for fund administration teams, allowing them to scale without sacrificing accuracy or control.
Balancing Innovation with Responsibility
Why This Matters Now
As private markets continue to grow and operational demands intensify, fund administrators are under pressure to modernize. This report offers practical guidance and strategic insights for firms seeking to deploy AI responsibly, improve operational resilience, and gain a sustainable competitive advantage.
We extend our thanks to our associate sponsors, Withum and Cole Frieman & Mallon, for their continued support and contributions to this research.