Vanguard Quietly Embraces AI in $13 Billion of Quant Stock Funds
- Jack Bogle-founded firm added machine learning to 4 products
- Second-biggest asset manager started experimenting in 2018
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Vanguard Group, famous for its old-school investment ethos and reluctance to chase newfangled technologies like crypto, has been quietly using machine learning across several active stock funds with a combined $13 billion under management.
The world’s second-largest asset manager added artificial intelligence to four so-called factor-based funds about a year ago just as the ChatGPT frenzy seized global markets. The bet: that new linguistic and data-analysis capabilities will help systematic strategies adapt to changing economic and market conditions.