Artificial intelligence is playing an increasingly important role in supporting the investment decisions of major asset managers, including the largest banks by market capitalization.
JPMorgan plans to expand its use of a generative AI tool called “Moneyball” later this year to help portfolio managers avoid bad decisions such as selling popular stocks prematurely, the company said. Financial Times.
The tool is designed to show users “how you and the market would have performed in similar situations and help you correct your biases and improve your process,” said Christian West, head of investment platforms at JPMorgan Asset Management. FT.
According to the report, “Moneyball” is a pilot program still in development and is part of JPMorgan’s Spectrum portfolio management platform, which leverages 40 years of data.
The initiative is part of a trend in the financial industry where the use of AI is evolving from routine tasks related to compliance and marketing to roles that can support decision-making.
Meanwhile, Voya Investment Management is using virtual analysts to help human researchers by alerting them to potential risks in stocks. FT Added.
Meanwhile, JPMorgan is already seen as a Wall Street leader when it comes to new technology.
Mike Mayo, a leading banking analyst, noted last month that JPMorgan plans to spend $17 billion on technology alone this year, adding that the unprecedented investment is turning the bank into the “NVIDIA of banking.”
“Banks are investing in AI, they’re investing in digital banking, they’re modernizing their back offices and trying to become the next generation of banks, the preeminent digital banks 2.0,” he said.
At the Fortune Brainstorm AI conference in London in April, Evident Insights co-founder and CEO Alexandra Mousavizadeh said the company AI Index In a survey about the approach big banks are taking to AI, JPMorgan took the top spot, followed by Capital One and Royal Bank.
JPMorgan, backed by CEO Jamie Dimon, has had a long-term focus on AI. Investing in AI innovationAccording to the report, responsible AI has three dimensions: talent, transparency, and enabling responsible AI.
