Below content is from J.P. Morgan Chase launches IndexGPT | Pensions & Investments (pionline.com):

J.P. Morgan Chase & Co. has launched IndexGPT, — basically a way to create thematic indexes — was launched after pilot testing and about one year after J.P. Morgan trademarked the word “IndexGPT.”

The capability will be deployed in J.P. Morgan’s quantitatively selected themes (or Quest) framework — a model that builds thematic indexes for the firm’s institutional clients.

The former tool is Quest, which has been provided to clients since 2021, uses natural language processing, or NLP, to determine whether a company is related to a specific theme. Some examples of thematic indexes include artificial intelligence, cloud computing, genomics and esports, multiplayer video games played competitively with spectators.

Quest does this by scanning news articles written about the company, and looking for specific keywords in these articles — keywords represent the vocabulary of the theme.

Now GPT-4, will be used to generate a static list of keywords one-time only at the creation of each thematic index. 

GPT algorithm more successfully identifies keywords than prior NLP models by generating a larger distribution of keywords and a superior description of the theme.

This launch is part of a broader effort to apply AI techniques to support the firm’s global strategic index business over the coming months and years. adoption of quantitative techniques applied to thematic indexes.