On February 19, 2026, Lowenstein Sandler issued the results of its sixth annual alternative data study (Report). “Our survey suggests that alternative data has become a foundational element of investment research,” Scott Moss, a Lowenstein Sandler partner and co-author of the Report, told the Hedge Fund Law Report. The growth may be due to increasing integration of artificial intelligence (AI). Although AI accelerates firms’ ability to generate insights and uncover alpha, it increases the need for strong governance, model risk oversight and clear data provenance, Moss noted. Firms face “a more complex commercial and governance environment with higher costs, tighter licensing terms and greater restrictions on AI-related data usage, particularly for model training,” he added. The latest survey examined the growing uptake of alternative data and AI; how firms are applying AI to alternative data; data sources; key risks and concerns; and budgeting. This article parses the Report, with additional commentary from Moss and the Report’s other co-authors, Lowenstein Sandler partner Boris Liberman and counsel George Danenhauer. See our coverage of Lowenstein Sandler’s 2023, 2022, 2021 and 2019 alternative data surveys.