Japan's Government Pension Investment Fund hired Sony Computer Science Laboratories as its partner in exploring how to incorporate artificial intelligence technologies in the long-term management of the fund's ¥156.8 trillion ($1.4 trillion) portfolio.
A Tokyo-based spokeswoman for the fund said in an email that over the coming six months or so, Sony CSL in coordination with GPIF staff, will study how GPIF can "adopt artificial intelligence appropriately in our investment operations," after which the results will be published on the fund's website.
A GPIF news release said the scope of the research project will include "analysis of AI's impact on asset managers' business models and appropriate manager evaluation methodologies," as well as potential uses of AI technologies to promote long-term investing, "including AI-driven dynamic factor analysis and scenario-based risk management."
Hiromichi Mizuno, the fund's chief investment officer, said in the release GPIF is "increasingly convinced" that AI can contribute to the fund's investment operations, from asset allocation to asset manager selection and evaluation processes. He called the project with Sony CSL a means of staying ahead of the curve.
The selection, announced Thursday, is the outcome of an RFP issued in July.
While conceding that major players in the asset management industry have already begun researching potential AI applications, the spokeswoman suggested that Sony CSL's status as a financial industry outsider could give it an edge in taking an innovative approach to the topic.
