JPMorgan expands AI tool to assist portfolio managers ‘correct bias’

Later this 12 months, JPMorgan will expand using a generative AI tool called Moneyball to assist portfolio managers avoid bad decisions, equivalent to potentially selling hot stocks too early, in line with the Financial Times.

The tool is designed to indicate users “how they and the market have behaved under similar circumstances and help them correct distortions and improve their processes,” Kristian West, head of investment platform at JPMorgan Asset Management, told FT.

“Moneyball” is a pilot program still under development and is an element of JPMorgan’s Spectrum portfolio management platform, which is predicated on 40 years of knowledge, the report said.

These efforts are a part of a trend within the financial sector, where using artificial intelligence is evolving from more routine tasks, equivalent to those related to compliance or marketing, to functions that may assist in decision-making.

Meanwhile, Voya Investment Management has deployed a virtual analyst to focus on potential risks in stocks to assist its human researchers FT added.

JPMorgan, in turn, is already considered a pioneer within the financial sector in the case of latest technologies.

Leading banking analyst Mike Mayo identified last month that JPMorgan plans to spend $17 billion on technology alone this 12 months, adding that this unprecedented investment makes JPMorgan the “Nvidia of banking.”

“They’re spending it on AI; they’re spending it on digital banking; they’re modernizing the back office; they’re trying to become the preeminent digital bank 2.0, which is the next version of banking,” he said.

And on the Fortune Brainstorm AI conference in London in April, Evident Insights co-founder and CEO Alexandra Mousavizadeh said the AI Index on major banks’ approaches to AI found that JPMorgan took the highest spot, followed by Capital One and the Royal Bank of Canada.

JPMorgan has a long-term give attention to AI, supported by CEO Jamie Dimon, together with Investments in AI innovationsTalent and transparency of responsible AI, in line with the report