HSBC introduces index fund built by AI

HSBC has built an automated, AI-based algorithm (in partnership with EquBot and IBM Watson) to read millions of data points about 1,000 of the largest publicly traded US companies. Data fed to the algorithm includes everything from press releases and tweets to satellite images of parking lots and the tone and language used during earnings calls. Based on these inputs, HSBC's AI algorithm automatically selects companies that it expects will see a rising stock price in coming months. These companies are organized into a fund--AiPEX--that is rebalanced at the end of each month. The algorithm also accounts for market volatility by modifying the balance of stocks and cash in the AiPEX fund on a daily basis.