AI Investment Advisory Step 1: JP Morgan launches Index GPT, focusing on hot topics first!
Is it reliable to use large models for stock selection? Morgan Stanley becomes the first major bank on Wall Street to try it out
Using large models for stock selection reliable or not? JPMorgan Chase becomes the first major bank on Wall Street to try it out.
JPMorgan Chase recently launched a new product series called IndexGPT, using OpenAI's GPT-4 model to create thematic investment baskets aimed at capturing the investment craze related to artificial intelligence. These thematic investment baskets are generated based on emerging trends keywords and filtered for relevant companies through independent natural language processing models, forming thematic indices.
This represents further attempts by Wall Street to develop financial products using AI technology. However, in the highly regulated financial industry, such attempts are still in the experimental stage, with JPMorgan Chase working with regulatory agencies to ensure product compliance.
Last year, JPMorgan Chase applied for the "IndexGPT" trademark, sparking widespread speculation at the time. However, the company stated that this was to protect intellectual property rights rather than targeting specific products. The release of products following this trademark application is also part of the bank's long-term plan to integrate AI into its index products.
Rui Fernandes, head of JPMorgan Chase's market trading structure department, emphasized that through this approach, the bank can choose a wider range of stocks, including those lesser-known companies.
While thematic funds were popular in 2020 and 2021, interest has waned due to poor market performance and rising interest rates. Nevertheless, JPMorgan Chase's new attempt still demonstrates financial institutions' determination to pursue innovation and optimize financial products using AI technology.
However, the use of AI technology on Wall Street is not new, as major banks have already invested billions of dollars in areas such as automated trading and risk management. Other financial institutions like Morgan Stanley and Citigroup are also utilizing generative AI tools to develop new products