Back to today’s briefing

Story perspectives

AI Threatens Active Fund Management, Predicts 71% of Trades

2/25/2026

50 12 Full Breakdown

Summary

Story summary

A Harvard Business School study finds artificial intelligence could significantly disrupt active fund management.
The research shows a machine-learning model can predict 71% of mutual-fund trading decisions.
The remaining 29% of trades are unpredictable and tend to yield better performance.
The findings challenge the value of high active-management fees in light of AI advancements.

1 of 1

Story summary

A Harvard Business School study finds artificial intelligence could significantly disrupt active fund management.
The research shows a machine-learning model can predict 71% of mutual-fund trading decisions.
The remaining 29% of trades are unpredictable and tend to yield better performance.
The findings challenge the value of high active-management fees in light of AI advancements.