The firm, called iFi AI, launches Wednesday.
The company will use AI models to help generate projected returns for stocks over various time periods, according to Ron Insana, iFi AI CEO and CNBC senior analyst and commentator.
IBM's watsonx powers the AI programs behind the new venture, incorporating fundamental news, technical analysis and other factors to make projections about where stocks are headed.
The AI programs are already being used to help make decisions with $6 billion that is managed institutionally, Insana said.
"The difference between quantitative analysis and AI-driven analysis is that AI learns and continues to learn and teach itself," Insana said.
Persons:
Ron Insana, Insana, Morgan Stanley
Organizations:
New York Stock Exchange, CNBC, Wall Street