HSBC recently announced it has teamed up with Equbot and IBM Watson to launch the artificial intelligence (AI)-Powered US Equity Index (AiPEX) family. The financial giant claims that the index is a market’s first in using AI as a method for equity investing.
According to HSBC, AiPEX uses IBM Watson and EquBot’s AI to “ingest and learn” from publicly available and continuously generated data points. Data points notably may include a company announcement, a tweet, a satellite image of a store parking lot, or even the tone of language a CEO uses during an earnings presentation.
“AiPEX uses a rules-based process to objectively evaluate each of the 1,000 largest U.S. publicly traded companies and selects those whose stock prices are poised for growth, according to the AI.”
While sharing more details about the index, Dave Odenath, Head of Quantitative Investment Solutions, Americas at HSBC Global Banking and Markets stated that AiPEX “simulates” a team of analysts and traders to learn from millions of pieces of information and identify potential investment opportunities.
HSBC added it is the exclusive licensor of AiPEX, and is offering a variety of investment solutions based on the indices to its clients globally