KX, a global leader in real-time, time-series, and AI-driven analytics, has released its “KX Capital Markets Data Report 2026: How to Gain the AI Edge”, revealing that AI adoption in capital markets can boost productivity by 62%, with even higher gains possible for firms that overcome adoption hurdles.
Surveying 2,200 quants, IT, and data leaders, KX’s research highlights a disconnect between investment and execution: large firms spend an average of $104 million annually on AI, yet 33% of projects fail or underperform due to fractured data infrastructure. Without unified systems, firms risk losing competitive ground.
The AI-Ready Quant Paradigm
The report identifies top-performing firms that have moved beyond pilots by adopting the AI-Ready Quant Paradigm, a structured approach to alpha generation and AI deployment:
- Unified Time-Indexed Pipelines: Break down silos and feed models instantly.
- Python-First Experimentation: Give quants the native tools they prefer.
- High-Fidelity Replays and Sandboxes: Validate models quickly and safely before production.
“Capital markets operate in an environment where the blink of an eye is too slow,” said Nataraj Dasgupta, SVP of AI, KX. “Aligning quants’ and IT leaders’ needs is crucial. Only 4% of analysts currently have full freedom to experiment, but it’s this experimentation that enables predictive, actionable advantage.”
Key Findings from the Research
- Execution Risk Due to Lack of Trust: 43% of quants could not trust insights due to incomplete data; 44% missed trading opportunities; 40% were unable to act; 35% struggled to model risk accurately.
- Infrastructure Friction Limits ROI: 70% of quants want to adopt more technologies but face security, compliance, cost, and governance constraints. 66% of IT leaders feel overwhelmed by analyst demands.
- Collaboration Drives Success: 82% of organizations involve quant teams in AI decisions, enabling smarter innovation and stronger alignment between IT and analysts.
“The next wave of competitive advantage won’t be algorithms alone, but infrastructure,” said Ashok Reddy, CEO of KX. “78% of quants warn that current data strategies risk failure. Leaders who bridge the gap between quant agility and IT governance will unlock transformative value.”
The report underscores that AI adoption in capital markets requires not just investment in algorithms, but an end-to-end infrastructure strategy that empowers quants while maintaining IT governance, compliance, and operational integrity.
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