DWS takes stake in Arabesque AI
DWS Group (DWS) has acquired a minority stake of 24.9 per cent in Arabesque AI, a UK-based company focuses on Artificial Intelligence (AI) to predict stock price developments via its proprietary AI engine, combining big data, machine learning, and high-performance computing.
In addition, both companies have agreed on a strategic partnership to enhance the capabilities of the AI engine, and to develop sophisticated AI-based investment solutions.
Both parties have agreed to maintain confidentiality on the price of the transaction and further financial details. Closing of the transaction has already taken place.
Key to the partnership will be the ongoing development of the AI engine, combining DWS’ investment expertise with Arabesque AI’s machine-learning and high-performance computing capabilities. Furthermore, innovative investment products and services that use the AI engine will be jointly developed. For this, both parties have agreed to establish an expert working group for ongoing collaboration. As part of the cooperation, both parties intend to work exclusively on new projects together. With this move, DWS strengthens its AI knowledge and capabilities going forward and – as promised at our Investor Update earlier in December – DWS will accelerate its digital readiness efforts.
“The strategic partnership with Arabesque AI is the next step towards the digitalisation of DWS. It will clearly strengthen our digital capabilities and, in particular, our Artificial Intelligence know-how. We will be able to harness disruptive technology within the asset management industry for our advantage,” says Asoka Woehrmann, CEO of DWS. He adds: “In the future, the AI engine will deliver innovative signals that will help us identify additional alpha sources, and will enable us to make smarter decisions.”
Dr Yasin Rosowsky, Co-CEO of Arabesque AI, says: “Artificial Intelligence is rapidly shaping global asset management, with investors increasingly exploring how to harness the power of AI technology to gain a competitive edge. We are delighted to welcome DWS Group as a strategic partner of Arabesque AI, combining their vast investment expertise with our AI technology to deliver market-leading AI powered portfolios and services.”
“This partnership will see us collaborate with DWS Group on innovative new AI-based solutions, as well as expanding the current capabilities of the Arabesque AI engine,” adds Dr Qasim Nasar-Ullah, Co-CEO of Arabesque AI. “AI will transform portfolio management, and has the potential to further the mainstreaming of ESG across global markets.”
Last year DWS invested in a minority stake in Arabesque S-Ray GmbH, an ESG data provider, and entered into a strategic partnership for the development of new ESG data products and services. With this suite of investments, DWS is following through in strengthening its ESG and digital capabilities, as announced at last year’s Annual General Meeting.