Investors are now increasingly using artificial intelligence to perform tasks from stock selection to risk management. J.P. Morgan researchers have built a group of AI investment agents that switch between stocks and bonds according to changing market conditions. In retrospective tests conducted over the past 20 years, the best-performing system outperformed the traditional 60/40 portfolio by 0.7 percentage points each year, with lower volatility, while also outperforming J.P. Morgan's own rules-based market state model.

Investors are now increasingly using artificial intelligence to perform tasks from stock selection to risk management. J.P. Morgan researchers have built a group of AI investment agents that switch between stocks and bonds according to changing market conditions. In retrospective tests conducted over the past 20 years, the best-performing system outperformed the traditional 60/40 portfolio by 0.7 percentage points each year, with lower volatility, while also outperforming J.P. Morgan's own rules-based market state model.