Dynamo Frontline Insight Report Finds ALTS Fund Accountants Bullish on Influence of AI, Automation, and Analytics on Industry
- Rising influence of automation and AI
- Data flow, reporting systems integration becomes critical
- Uncertainty around ESG reporting requirements
Dynamo Frontline Insight Report: Trends, Challenges, and Insights from Leading PE/VC Fund Accountants draws on survey data collected within the past eight weeks, offering a near real-time perspective on emerging trends.
Rising influence of automation and AI
Seven in 10 fund accountants said the “shift toward automation and AI adoption” is the top industry trend they expect to gain momentum in 2025. About as many (61%) agreed with the statement “Automation and AI will play a major role in fund accounting.” Another 34% said that the technologies would “increase somewhat but would not be a game changer.” Notably, 5% anticipate “no significant reliance on automation and AI” over the next 12 months.
“The complexity of ALTS fund accounting presents compelling, but nuanced, use case for technology,” said Nield Montgomery, Dynamo Software managing director. “Fund accountants clearly see the opportunity to simplify complexity, reduce manual tasks, and flag irregularities, which frees time for strategic analysis. At the same, human oversight is still very much needed to interpret complicated financial data, ensure compliance, and inform strategic investing decisions. We believe the importance of human expertise in this field of accounting explains why a percentage of respondents shared uncertainty about how transformative technology will be this year.”
A majority of respondents ranked time-consuming reporting processes (64%) and manual data entry and reconciliation (61%) as the top challenges faced by fund accountants today. Additionally, 45% of respondents are seeking enhanced features to manage complex transactions, and 39% reported a need for automated compliance monitoring.
Data flow, reporting systems integration becomes critical
Six in 10 fund accountants selected “enhanced reporting and analytics requirements” as a top industry trend they expect to gain momentum in 2025. This expectation aligns with other key findings: a significant percentage (41%) cite keeping up with regulatory changes as a top challenge, and 70% say software integration between systems is essential to their workflow.
“As reporting demands grow more complex, seamless data flow between platforms becomes critical for accuracy, efficiency, and compliance,” said Montgomery. “Without the ability for systems like CRM and analytics platforms to talk to one another, meeting heightened reporting standards will become increasingly cumbersome.”
A lack of system integration was cited as a top challenge to the fund accounting workflow by 56% of Dynamo survey participants. As follows, nearly 60% of professionals said integration with other platforms was a top feature lacking in their current software that they wish was available.
Uncertainty around ESG reporting requirements
Participants were split on how changes to environmental, social and governance (ESG) reporting may affect their work in 2025. While 45% expect minimal to no impact, 49% anticipated there could be substantial impact. Thirty-nine percent said ESG reporting changes would require new systems and processes, and another 10% said they anticipate significant additional workload (10%).
“ESG reporting is in flux and without industry standards, it often varies from fund to fund and from investor to investor,” Montgomery explained. “That can make it difficult to predict how changes will impact workflows and the technology supporting them. The evolving nature of ESG expectations is one of many reasons it’s crucial for fund accountants to have access to configurable reporting platforms that can flex based on the needs of the firm, the fund or the investors they are reporting to.”
To that point, 66% of survey participants said they prefer configurable software solutions to standardized products with out-of-the-box capabilities.
