Vanguard Quietly Embraces AI in $13 Billion of Quant Stock Funds

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.

“What we want to do here is represent the process that we believe in, which is a fundamentally driven quant process,” ...