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 within the financial industry where the use of AI is evolving from more routine tasks, such as those 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.”
“They're putting money into AI, they're putting money into digital banking, they're modernizing their back offices and trying to become the next generation of banks, the preeminent digital bank 2.0,” he said.
And at the Fortune Brainstorm AI conference in London in April, Evident Insights co-founder and CEO Alexandra Mousavizadeh said that in her company's AI index of big banks' AI efforts, JPMorgan took the top spot, followed by Capital One and Royal Bank of Canada.
According to the report, JPMorgan, with the backing of CEO Jamie Dimon, has had a long-term focus on AI, along with investments in AI innovation, talent, and responsible AI transparency.
