A Simple Test of the Value of Artificial Intelligence (AI) for Investments.

5 Pages Posted: 16 Nov 2017

Date Written: November 14, 2017

Abstract

This simple test of the value of Artificial Intelligence (AI) for investments is about the IBM’s Watson ETF's approach to picking stocks (ticker NYSE: AIEQ). This ETF is actively managed and it is based on the results of a proprietary, quantitative model (the "Equbot Model") developed by Equbot LLC ("Equbot") with Watson. This ETF has been launched on October 18, 2017 and is relatively new, so there's no performance data to go by. However, since the Artificial Intelligence is able to constantly learn based on new financial information it should theoretically improve as time goes on. Hence the interest of objectively following the evolution of AIEQ as a simple test of the value of AI for investments. Let’s call this "online real time research". We also present a referential that should guide AI specialists in developing AI for investments if we do not want the development of AI for investments to be Superficial Intelligence (SI) for investments.

Keywords: Artificial Intelligence, AI, Investments, ETF, Intrinsic values, Stocks, Shares

JEL Classification: G11, O16, D25, E22

Suggested Citation

Saint-Pierre, Jacques, A Simple Test of the Value of Artificial Intelligence (AI) for Investments. (November 14, 2017). Available at SSRN: https://ssrn.com/abstract=3071052 or http://dx.doi.org/10.2139/ssrn.3071052

Jacques Saint-Pierre (Contact Author)

Laval University ( email )

School of Business
Palasis-Prince Building
Quebec, Quebec G1K 7P4
Canada
418-839-9964 (Phone)

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