Is it unreliable to use big models to select stocks?$JPMorgan (JPM.US)$It became the first big crab eater on Wall Street.

J.P. Morgan recently launched a new product line called IndexGPT to create themed investment baskets using OpenAI's GPT-4 model to seize the investment boom related to artificial intelligence. These thematic investment baskets generate keywords based on emerging trends and select related companies through independent natural language processing models to form a thematic index.

This represents a further attempt by Wall Street to develop financial products using AI technology. However, in the highly regulated financial industry, this experiment is still experimental, and J.P. Morgan Chase is cooperating with regulators to ensure product compliance.

Last year, J.P. Morgan applied for the “IndexGPT” trademark. At the time, the action drew widespread speculation, but the company said it was to protect intellectual property rights rather than specific products. The release of this product after applying for a trademark is also part of the bank's long-term plan to integrate AI into its index products.

Rui Fernandes, head of the trading structure department at J.P. Morgan Chase, emphasized that through this approach, banks can select a wider range of stocks, including companies that are not widely known.

Although popular in 2020 and 2021, interest in thematic funds has waned due to poor market performance and rising interest rates. Despite this, J.P. Morgan's new experiment still shows the determination of financial institutions to pursue innovation and use AI technology to optimize financial products.

However, the use of AI technology on Wall Street is nothing new; major banks have invested billions of dollars in automated transactions, risk management, etc. Other financial institutions such as Morgan Stanley and Citigroup are also using generative AI tools to develop new products.

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