"Hedge funds and other money managers spent $2.8 billion on alternative data in 2025, according to a new report from consultancy Neudata, a 17% jump from the year before. It's more than double what asset managers spent on alternative data in 2021, which includes a wide range of non-traditional information sources. The report projects that the total spend on alternative datasets could jump to more than $23 billion in the consultancy's bull case in 2030 and just under $8 billion in the bear case."
"AI is also changing how funds consume and ingest alternative data sources, the report notes. Now that structuring and cleaning raw data has become a faster, cheaper task thanks to AI tools, asset managers are looking for direct hook-ups to alternative data vendors' feeds. It's also opened up alt data to a range of managers that were once unable to pull meaningful insights from the data because of technical challenges."
Spending on alternative data rose to $2.8 billion in 2025, a 17% increase from the prior year and more than double 2021 levels. Projections show total spend could reach over $23 billion in a bull-case by 2030 and just under $8 billion in a bear-case. Growth will depend on how many new buyers and sellers enter the market. Several hundred new datasets launched last year. AI has made structuring and cleaning raw data faster and cheaper, prompting asset managers to seek direct feed integrations and enabling more managers to extract meaningful insights.
Read at Business Insider
Unable to calculate read time
Collection
[
|
...
]