From Theory to Action: 5 Questions Reshaping the AI-Powered Buy-Side Operating Model

How are buy-side firms rethinking their operating models to prepare for the age of AI?

It’s no longer just about digital transformation—it’s about embedding intelligence into every layer of the investment lifecycle.

At Indus Valley Partners (IVP), we work closely with leading asset managers who are actively exploring how to evolve their data infrastructure, technology stack, and service models for an AI-powered future. Below, we explore five of the most urgent questions driving change across private markets, credit, and hedge fund operating teams, and why answers require more than just tech upgrades.

1. How Do You Build a Scalable, AI-Enabled Operating Model?

Asset managers today are facing unprecedented asset class complexity, capital pool diversity, and fund structure proliferation,from evergreen vehicles and co-invests to SMAs and regulated entities.

The question is no longer “How do we automate a task?” It’s “How do we build operating models that can scale with intelligence and agility?”

This requires:

• Modular process design
• Smart sourcing strategies
• Integration of agentic systems that can learn, adapt, and evolve

2. What Does It Take to Become GenAI-Ready?

To realize the promise of generative AI, firms must first mature their data ecosystems. That means going beyond warehouses and lakes to:

• Implement robust metadata orchestration
• Standardize reference data across platforms
• Deploy governance frameworks that ensure lineage, accuracy, and transparency

A fragmented data landscape kills AI value. A unified foundation powers it.

Quick Read: GenAI in Data Management: Best Practices and Future Strategies

3. When Does Managed Services Become a Strategic Enabler?

Managed services are no longer a back-office outsourcing tactic. In leading firms, they’re a frontline enabler of growth, resilience, and scalability.

The shift is clear:

• From tactical cost savings → to strategic agility
• From transactional vendors → to embedded, digital-first partnerships
• From volume handling → to operational alpha

Explore: Scaling Operations Through Digital-First Managed Services

4. Build vs. Buy: What’s the Right Balance in a Composable Stack?

The build vs. buy decision is being reframed in the GenAI era. It’s no longer binary—it’s about flexibility, differentiation, and TCO.

• Build your proprietary intellectual property (IP)
• Buy commoditized point solutions
• Integrate pre-built components and APIs within a composable architecture

Smart CTOs are creating hybrid strategies that reduce risk, shorten time-to-value, and future-proof the stack.

5. What’s Next for Private Funds?

Private fund managers are expanding wallet share by launching adjacent strategies and structures. But with growth comes operational complexity.

Key challenges include:

• Scaling fund onboarding, accounting, and reporting across strategies
• Meeting LP demands for transparency, timeliness, and flexibility
• Deploying AI to reduce latency and improve accuracy across the investment lifecycle.

To compete, GPs are investing in adaptive operating models, flexible service partnerships, and data-first planning.

Read: AI-Powered Automation for Private Funds

Final Thoughts: From Evolution to Intelligence

The buy-side’s journey is no longer about digitizing old processes—it’s about rethinking them from the ground up. This shift toward agentic, AI-powered systems is already underway.

At IVP, we’re helping firms design operating models that are:

•  Composable
• Intelligent
• Scalable
• Built to Learn

Explore more of our thinking at www.ivp.in/or join us at MindMeld 2025 to hear from leaders transforming how finance works.