AI adoption doubles as alternative data budgets surge – Neudata launches 2025 industry report

Artificial intelligence adoption among investment firms has nearly doubled in the past year, while 89% of data buyers expect their alternative data budgets to rise or remain steady, according to Neudata’s new industry report The Future of Alternative and Market Data 2025.

The report, based on 171 responses from global hedge funds, asset managers and data providers, highlights how financial institutions are reshaping strategies with alternative data, market data and AI-driven tools. It shows a sector moving into a phase of growth where budgets are expanding, adoption is accelerating and buyer demand is shifting to new dataset categories.

Key findings from the report include:

• Alternative data budgets growing – nearly nine in ten firms expect to increase or maintain spending in 2026, reinforcing its role in modern investment research.
• Market data stability – buyers anticipate steady or modest growth in spend in 2026, underlining its value as a foundation for investment workflows.
• AI integration accelerating – two-thirds of firms now use AI to boost efficiency, with more applying AI and machine learning to optimise trading and investment strategies.
• Ongoing buyer challenges – price negotiations, limited dataset trial conversions and concerns over data quality remain barriers to adoption.
• Shifting demand for datasets – information technology and consumer discretionary data are now the most in-demand categories, reflecting macroeconomic uncertainty and AI’s rising importance.

Rado Lipuš, CEO and founder of Neudata, commented: “Alternative and market data are core to how investment firms operate. Our 2025 report highlights not only the resilience of this sector but also the acceleration of AI adoption across the industry. Neudata’s mission is to provide unbiased intelligence that helps data buyers and providers navigate this fast-evolving landscape.”

The Future of Alternative and Market Data 2025 report provides essential intelligence for hedge funds, asset managers, data providers and financial institutions seeking to understand emerging trends in data usage, budgets and technology adoption.

Download the full Neudata report here >