Requests for proposals (RFPs) have been the cornerstone of the institutional sales and client service process but continue to pose a challenge for asset management firms from a resource perspective. In response, RFP teams are increasingly exploring various technologies to boost efficiency and improve accuracy, according to the latest Cerulli Edge—U.S. Institutional Edition.

As asset managers face market uncertainty, rising client expectations, and increasing competition, the RFP teams responsible for securing new business must adapt. The rapid advancement and deployment of artificial intelligence (AI) are radically changing team operations and helping address key challenges.

According to Cerulli’s research, AI is being used throughout the institutional sales and service process. A vast majority of teams (81%) employ AI to generate and refine RFP content. Additionally, 77% use it for notetaking and summarizing meetings with clients, prospects, and consultants, sharing these summaries internally. A small but growing number of teams use AI to craft prospecting letters (32%), identify potential clients (26%), and strategize sales efforts (26%).

Among the 81% of distribution teams currently using AI, the most common applications for RFP teams include automating responses (80%), efficiently searching content libraries (53%), and speeding up due diligence questionnaire (DDQ) responses with AI-generated suggestions (53%).

“A key opportunity for improvement lies in content management,” says Agnes Ugoji, analyst. “Asset management firms maintain an extensive repository of responses, historical submissions, regulatory language, and product data. As the volume of RFPs increases and product offerings expand, the way in which content libraries are structured and used can either accelerate or delay a team's response rate,” she adds.

While firms have achieved success in integrating AI into sales and distribution processes, AI will not replace the value of human oversight. “AI can improve efficiency in certain areas of the RFP process, but it is unable to replace the credibility that comes from well-crafted and verified human communication,” says Ugoji. “However, firms that can adopt emerging tools early and integrate them thoughtfully will be better positioned to meet client demands and differentiate themselves in an increasingly competitive environment,” she concludes.