Artificial intelligence is playing an increasing role in helping make investment decisions at major asset managers, including the largest bank by market capitalization.
Later this year, JPMorgan will expand the use of a generative AI tool known as “Moneyball” to help portfolio managers avoid bad decisions, such as potentially selling hot stocks too early, according to Financial Times.
Christian West, head of the investment platform at JPMorgan Asset Management, said the tool is designed to show users “how they and the market have behaved in similar circumstances, helping them correct bias and improve their processes.” foot.
“Moneyball” is a pilot program still in development that is part of JPMorgan's Spectrum portfolio management platform that draws on 40 years of data, according to the report.
The effort is part of a trend in the financial sector as the use of AI evolves from routine tasks, such as those related to compliance or marketing, toward roles that can aid in decision-making.
Meanwhile, Voya Investment Management uses a virtual analyst that flags potential risks in stocks to assist its human researchers foot He added.
For its part, JPMorgan is already considered a leader in the financial sector when it comes to new technologies.
Chief banking analyst Mike Mayo noted last month that JPMorgan plans to spend $17 billion this year on technology alone, adding that the unprecedented investment turns JPMorgan into the “NVIDIA of banking.”
“They're spending money on AI; they're spending it on digital banking; they're modernizing the back office. They're trying to be the preeminent digital bank 2.0, which is the next version of banking.”
At the Fortune Brainstorm AI conference in London in April, Alexandra Mousavizadeh, co-founder and CEO of Evident Insights, said her company Artificial Intelligence Index The approaches taken by major banks towards artificial intelligence showed that JP Morgan took first place, followed by Capital One and Royal Bank of Canada.
JPMorgan has had a long-term focus on artificial intelligence, supported by CEO Jamie Dimon, along with… Investing in artificial intelligence innovationand talent and transparency in responsible AI, according to the report