J.P. Morgan's AI agent outperformed a 60/40 investment portfolio in backtesting.

Investors are increasingly using artificial intelligence to carry out various tasks ranging from stock selection to risk management. Researchers at J.P. Morgan have developed a group of AI investment agents that switch between stocks and bonds based on the constantly changing market conditions. In backtests conducted over the past twenty years, the best-performing system outperformed a traditional 60/40 investment portfolio by 0.7 percentage points annually, with lower volatility, while also outperforming J.P. Morgan's own rule-based market timing model.