IndexGPT

• 06 May 2024

JPMorgan has introduced IndexGPT, a thematic investment tool leveraging OpenAI's GPT-4 model.

• This tool creates thematic investment baskets by generating keywords associated with emerging trends.
• Instead of traditional industry sectors or company fundamentals, IndexGPT identifies investments based on these emerging trends.
• This initiative reflects Wall Street's eagerness to capitalize on AI-driven advancements in the finance sector.
• The utilization of AI tools like generative AI marks a significant transformation in banking functions.
• Thematic funds experienced heightened interest, but interest waned due to factors like poor performance and higher interest rates.