07.13.26

JPMorgan’s AI Beat the 60-40 in Tests; Advisors Aren’t Worried

by: Dan Shaw

JPMorgan tests found that custom-built artificial intelligence (AI) agents outperformed a traditional 60% stock, 40% bond portfolio across historical backtests, with the strongest result exceeding the benchmark by 0.7 percentage point annually while producing lower volatility. The bank cautioned that the results may reflect in-sample bias and said AI should be grounded in an established asset-allocation process. A separate PwC survey found that only 24% of investors would use AI-powered tools during market volatility, compared with 48% who would consult a financial advisor, indicating that human guidance remains important even as investment firms test more advanced systems.

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