In the fall, Deloitte published its 2025 outlook for the investment management industry. Now that Q1 ’25 is about to wrap up, it’s clear that Deloitte’s forecast was on track. Rapid technological advancements, evolving investor preferences, and a shifting global economic landscape have all transformed investment management, and the year has only just begun. 

At MRINetwork, we’re watching how these trends impact talent acquisition strategies in real time. Several emerging technologies and strategy shifts are creating demand for a new class of techno-functional workers. In particular, AI and changing risk management strategies are having a significant impact on investment management hiring trends, but that’s not all. Here’s a quick overview of what we’re seeing.

Adoption of Emerging Technologies

Like many other sectors in 2025, the investment management landscape is being reshaped by AI. Deloitte’s outlook emphasizes “firms that quickly adopt AI into their operations and sales strategies are expected to gain a competitive edge.” This is turning out to be true in more ways than one.

First, AI has the potential to enhance productivity by automating several risk management processes. Algorithms can already deliver personalized investment advice tailored to individual investor needs. While such use of AI in finance applications is not yet standard, firms taking advantage of the technology are seeing impressive productivity gains.

However, while AI software is widely available, workers with the skills to manage it and other emerging technologies are scarcer. This skill gap is leading to a surge in demand for candidates with expertise in these technologies:

• AI and machine learning: Investment management needs more AI/ML experts to build and refine models for portfolio optimization, risk assessment, and market predictions.
• Data science: There’s also a bump in demand for experienced professionals capable of mining insights from vast datasets.
• Cloud computing: The industry needs more specialists to manage AI’s large-scale data requirements.
• Cybersecurity: Protecting sensitive data is even more important with AI-driven systems, leading to a run on experienced security personnel.

Shifts in Product and Distribution Strategies

Deloitte’s 2025 outlook highlights a noticeable shift towards a more diverse product mix. This trend is in response to customers’ evolving needs and growing interest in alternative investments. Private credit and innovative fund structures like evergreen funds were among the most popular in Q1.

The rise of private credit and hybrid fund structures presents significant growth opportunities for firms that have employees who can work with these complex asset classes. In particular, investment professionals with experience in private credit analysis will be called upon to manage the shift toward private debt portfolios.

We also see increased demand for investment managers with experience in hybrid fund structures. This skill set is unique, as they must be experts in both compliance and optimizing investor returns.

On the distribution side, traditional strategies are being augmented — or, in some cases, replaced — by a switch to digital. Deloitte anticipates firms that can adopt these new distribution strategies will be critical drivers of AUM (assets under management) growth. Expect to see increased demand for experienced AUM professionals throughout 2025.

Emphasis on Risk Management

Distribution’s shift into the digital realm promises increased efficiency and personalization but also brings new risks. Risk management will become more critical as firms increasingly rely on technology and data-driven strategies. 

Deloitte’s report underscores the cybersecurity threats and other risks associated with technological advancements. Investment management firms must prioritize cybersecurity, partly because of the interconnected nature of digital systems. Also, the data in question is incredibly sensitive, requiring specialized security knowledge.

In addition to the required cybersecurity professionals, data governance experts will be in demand for the rest of the year, as they can ensure regulatory compliance while protecting client privacy.

At the same time, traditional compliance officers must add to their skill sets or face being replaced. They are now responsible for ensuring AI-driven strategies follow investment sector laws and other financial services regulations. Firms must establish modern data handling and reporting policies, and experienced compliance officers can lead the way if they upskill. Also, look for policy managers to incorporate data integrity and cybersecurity tasks into their jobs as AI in finance becomes more prevalent.

Investment Management: An Industry in Transformation

Deloitte’s 2025 investment management outlook clearly shows an industry undergoing transformational change. While the impact will be felt across every department in investment firms nationwide, recruiters, in particular, are under pressure to supply the talent required for these rapid shifts. 

Expertise in AI, data analytics, and cybersecurity will continue to be in high demand throughout 2025 and beyond. In addition, a shift towards alternative investments and fund structures requires specialized skills, creating further ripples in an already competitive talent market. 

As each year’s outlook shows, investment management is a dynamic, evolving field. Firms that adapt quickly and adjust strategies lead the charge, but only if they have the talent to make it happen. For more insights across a wide range of industries, follow MRINetwork.