Summary
AI model governance is now essential to hedge funds scaling agentic and generative AI. Without robust oversight, firms face model drift, poor explainability, operational risk, and low ROI. Embedding governance, human-in-the-loop controls, and clear agent accountability ensures transparency, compliance, and reliable performance across AI-driven investment workflows.
Premal Desai
Premal Desai is the Managing Director overseeing the product team in India for Arcesium. Prior to his current role, Premal was co-head of Arcesium’s Financial Operations group in India.
Sources:
[i] Business Insider, November 28, 2025. https://www.businessinsider.com/how-hedge-funds-citadel-balyasny-point72-use-invest-ai-2025-11
[ii] AIMA, 2025. https://cdn.lawreportgroup.com/acuris/files/Law-Report-Group-Files-New/Charting-the-course-Lessons-from-AI-leaders-in-alternative-investment.pdf
[iii] Dataversity, June 17, 2025. https://www.dataversity.net/articles/data-governance-and-ai-governance-where-do-they-intersect/
[iv] CFA Institute, June 10, 2025. https://rpc.cfainstitute.org/research/reports/2025/ai-washing
[v] DHS, June 2024. https://www.hsgac.senate.gov/wp-content/uploads/2024.06.11-Hedge-Fund-Use-of-AI-Report.pdf