Ai for Alpha, a leading fintech company specializing in leveraging machine learning for advanced investment strategies, announces the integration of Gen AI into its asset management models.

“We are excited by this innovative approach as it represents a significant advancement in optimizing investment processes through the application of generative AI technologies," says Beatrice Guez, CEO. "Specifically, Generative AI can synthesize and interpret news and investor sentiments from multiple sources and translate them into actionable investment decisions.”

By utilizing advanced technologies like RAG (Retrieval Augmented Generation), generative AI can analyze a variety of sources, offering an up-to-date perspective on investor sentiment and market trends. Investment professionals find it valuable to combine the analysis of investor sentiments with market indicators such as trends, risk aversion, and other market factors. “To that effect, Ai for Alpha has decided to use its technology to merge investor sentiment with quantitative market indicators,” says Jean-Jacques Ohana, head of product development.

"Our strategy combines traditional indicators characterizing financial stress on major asset classes, such as implied volatility and credit spreads, with indicators derived from Generative AI models that characterize investor sentiment on stock markets," explains Thomas Jacquot, Head of Business Development. "Taking positions based on these two indicators significantly improves the risk/reward profile for stock market investors, enabling them to limit major losses while profiting from the most favorable expansion phases."

"I believe our Gen AI-powered model will bring substantial improvements in the risk management of our clients’ equity portfolios. We are looking forward to implementing them with our asset management, banks, and insurance partners," concludes Jacquot.