JPMorgan Chase & Co. presented IndexGPT.
It is worth noting that about a year ago, unofficial data began to spread in the information space about a certain artificial intelligence-based product under the mentioned name. Since then, there have been numerous speculations about what IndexGPT is. JPMorgan Chase, through the debut of its new product, stopped the flow of all sorts of speculation and assumptions.
The IndexGPT from the largest financial institution in the United States by the volume of assets is a range of thematic investment baskets. This product was developed using the OpenAI GPT-4 artificial intelligence model. A new AI tool presented by the bank generates a list of keywords associated with a theme. The relevant data is then fed into a separate natural language processing model that scans news articles to identify the companies involved in the sphere.
IndexGPT can also be described as a largely automated way of generating so-called thematic indexes that identify financial injections based on emerging trends, including cloud computing, esports, and cybersecurity. In this case, there is no kind of limited focus on traditional industrial sectors or the fundamentals of companies.
The debut of IndexGPT is also, in a sense, a symbolic event that demonstrates Wall Street’s efforts to draw investors’ attention to everything related to artificial intelligence. It is worth noting that currently there is a widespread opinion in the expert community that AI can become a catalyst for a new era of accelerated economic growth. Against the background of relevant forecasts and expectations, the share price of many large technology companies has increased significantly.
IndexGPT is not a revolutionary development in terms of its potential impact on the processes carried out in the financial industry. Currently, many technology companies and quant traders are trying to master the markets through the use of artificial intelligence. At the same time, the formation of the most effective and expedient scenario for applying machine intelligence is a very difficult task. It is also worth noting that in this case, errors can cause multimillion-dollar damage.
Rui Fernandes, head of the market trading structuring unit at JPMorgan Chase, says that IndexGPT is the first step in the long-term process of integrating artificial intelligence across its index offering.
As we have reported earlier, JPMorgan CEO Says About Money in AI World.
