Artificial intelligence is playing a growing role in helping investment decisions at top asset managers, including the largest banks by market capitalization.
Later this year, JPMorgan will expand its use of a generative artificial intelligence tool called Moneyball to help portfolio managers avoid bad judgment calls that could lead to premature selling of popular stocks, according to the bank. Financial Times.
Kristian West, head of investment platforms at JPMorgan Asset Management, said the tool is designed to show users “how they and the market performed in similar situations and help them correct biases and improve their processes.” Financial Times.
“Moneyball” is a pilot project still under development and part of JPMorgan’s Spectrum portfolio management platform, which draws on 40 years of data, the report said.
The work is part of a trend in finance where the use of artificial intelligence is evolving from more routine tasks, such as those related to compliance or marketing, to roles that can aid decision-making.
Meanwhile, Voya Investment Management has been using a virtual analyst to help its human researchers by flagging potential risks in stocks Financial Times Add to.
JPMorgan Chase, for its part, is already seen as a leader in the financial sector when it comes to new technologies.
Top banking analyst Mike Mayo noted last month that JPMorgan plans to spend $17 billion this year in technology alone, adding that the unprecedented investment is turning the bank into the “Nvidia of banking.” “.
“They’re spending money on artificial intelligence; they’re spending money on digital banking; they’re modernizing the backend; they’re trying to be the preeminent digital bank 2.0, which is the next version of banking,” he said .
At Fortune’s Brainstorm AI conference in London in April, Alexandra Mousavizadeh, co-founder and CEO of Evident Insights, said her company’s AI index of the approaches to AI taken by big banks placed JPMorgan Chase at the top, followed by It’s Capital One and Royal Bank.
According to the report, JPMorgan Chase, with the support of CEO Jamie Dimon, has a long-term focus on artificial intelligence and invests in artificial intelligence innovation, talent and responsible artificial intelligence transparency
