Asset managers are increasingly using artificial intelligence to guide investment decisions, track the habits of portfolio managers and identify moneymaking opportunities. JPMorgan later this year plans to expand the use of a generative AI tool that flags questionable decisions by portfolio managers, such as potentially selling top-performing stocks too soon, company officials told the Financial Times.
“The flight management system augments the pilot’s decision-making, but the pilot has the final say,” Shepherd said. Legalist, which runs a $1bn hedge fund focused on litigation finance, uses a proprietary AI search tool called “Truffle Sniffer” to find attractive investment targets among a sea of civil suits. The “sniffer” scans court records for signs of favourable outcomes, such as friendly judges and litigation classes as well as pre-trial rulings that indicate particularly strong cases.