AI Insights

AI Reveals What Investors Really Think About Stocks

Published

4 days ago

September 9, 2025

Asset pricing models have historically relied on categories: Does a company have a large market capitalization or small? Is it profitable or struggling? Is it value or growth? These groupings help identify similar companies, but traditional financial metrics offer limited information and don’t explain the diverse reasons investors buy the same stock. For instance, one investor might hold Apple for its chip hardware, another for its app store, and a third because it’s a large-cap stock.

Harvard’s Xavier Gabaix, Chicago Booth’s Ralph S. J. Koijen, New York University’s Robert J. Richmond, and Princeton’s Motohiro Yogo used artificial intelligence to analyze investors’ decisions and differing motivations. Their research demonstrates how AI can extract information from portfolio holdings, which represent the culmination of the private research, expert calls, proprietary analysis, and investment insights that investors employ. Accounting data and text from financial reports only capture the publicly available subset of this information.

The researchers adapted transformer models (the same architecture behind Open AI’s ChatGPT) to financial data to create asset embeddings and investor embeddings, which are vector representations of companies and investment strategies, respectively. These vectors capture how investors group stocks into categories, including growth; sector exposure; environmental, social, and governance preferences; and sensitivity to macroeconomic issues—even when these investing themes aren’t explicitly mentioned in financial statements.

To understand embeddings, think about basketball star LeBron James. Traditional statistics indicate that he is a 6 ft., 9 in., 250-lb. forward. But fans know he can play point guard in some lineups, and center, shooting guard, small forward, or power forward in others. His role depends on who else is on the court.

Similarly, a company can play different roles for investors—in one portfolio, Apple is a growth anchor, in another it’s a defensive cash-flow play, and so on. The researchers’ model looks at the full financial lineup and generates a contextualized embedding for each stock based on its role in that portfolio.

The researchers used various AI techniques to analyze US equity portfolios from 2005 to 2022, including mutual funds, exchange-traded funds, closed-end funds, variable annuity funds, and hedge funds. The researchers didn’t train the model on all available portfolio data. They purposefully left out 10 percent of the portfolios so they could test whether their model could accurately predict how investors construct portfolios. Then they employed masked asset modeling, which involves removing some stocks from portfolios and using the embeddings to predict what was removed.

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AI Insights

Malaysia and Zetrix AI Partner to Build Global Standards for Shariah-Compliant Artificial Intelligence

Published

2 hours ago

September 13, 2025

The Editors

JOHOR BAHRU, Malaysia, Sept. 13, 2025 /PRNewswire/ — In a significant step towards islamic values-based artificial intelligence, Zetrix AI Berhad, developer of the world’s first Shariah-aligned Large Language Model (LLM) NurAi and the Government of Malaysia, through the Prime Minister’s Department (Religious Affairs), today signed a Letter of Intent (LOI) to collaborate on establishing the foremost global framework for Shariah compliance, certification and governance in AI. The ceremony was witnessed by Prime Minister YAB Dato’ Seri Anwar Ibrahim.

Building Trust in NurAI

Front row: Datuk Mohd Jimmy Wong Abdullah, Director of Zetrix AI Berhad (left) and Dato’ Dr. Sirajuddin Suhaimee, Director General of Department of Islamic Development Malaysia (JAKIM) (right), during the signing of the Letter of Intent between Zetrix AI Berhad and the Government of Malaysia, through the Prime Minister’s Department (Religious Affairs). Back row, from the left: The signing was witnessed by YB Tuan Haji Mohd Fared bin Khalid, Chairman of the Johor State Islamic Religious Affairs Committee; YB Dato’ Haji Asman Shah bin Abd. Rahman, Secretary of the Johor State Government; YAB Dato’ Onn Hafiz bin Ghazi, Chief Minister of Johor; YAB Dato’ Seri Anwar bin Ibrahim, Prime Minister of Malaysia; and YB Senator Dato’ Setia Dr. Haji Mohd Na’im bin Haji Mokhtar, Minister in the Prime Minister’s Department (Religious Affairs).

JAKIM, Malaysia’s Department of Islamic Development, is internationally recognised as the gold standard in halal certification, accrediting foreign certification bodies across nearly 50 countries. Malaysia has consistently ranked first in the Global Islamic Economy Indicator, reflecting its leadership not only in halal certification but also in Islamic finance, food and education. By integrating emerging technologies such as AI and blockchain to enhance compliance and monitoring, Malaysia continues to set holistic benchmarks for the global Islamic economy.

NurAI has already established itself as a pioneering Shariah-aligned AI platform. With today’s collaboration, JAKIM, under the Ministry’s leadership, would play a central role in guiding the certification, governance and ethical standards of NurAI, ensuring its alignment with Islamic principles.

Additionally, this milestone underscores the urgent need for AI systems that move beyond secular or foreign-centric worldviews, offering instead a platform rooted in Islamic ethics. It positions Malaysia as a global leader in ethical and Shariah-compliant AI while setting international benchmarks. The initiative also reflects the country’s halal and digitalisation agendas, ensuring AI remains trusted, secure, and representative of Muslim values while serving more than 2 billion people worldwide.

Prime Minister YAB Dato’ Seri Anwar Ibrahim reinforced that national policies should incorporate various inputs, including digitalisation and artificial intelligence — and must always remain grounded in islamic principles and values that deserve emphasis.

Areas of Collaboration

Through the LOI, Zetrix AI and the Government via JAKIM, propose to collaborate in three key areas:

Shariah Certification and Governance — Developing frameworks, ethical guidelines and certification standards for AI systems rooted in Islamic principles.
Global Advocacy and Promotion — Positioning Malaysia as the global centre of excellence for Islamic AI and championing the Islamic digital economy projected at USD 5.74 trillion by 2030.
JAKIM’s Official Channel on NurAI — Creating a trusted platform for Islamic legal rulings, halal certification and verified Shariah guidance, combating misinformation through AI.

Reinforcing Global Halal Tech Leadership

Through this collaboration, NurAI demonstrates how advanced AI can be guided by ethical and faith-based principles to serve global communities. By extending halal leadership into the digital economy particularly in Islamic finance, education and law — Malaysia positions itself as a key contributor to setting international benchmarks for Shariah-compliant AI.

Inclusive, Secure and Cost-Effective AI

NurAI is developed in Malaysia, supporting Bahasa Melayu, English, Indonesian and Arabic. It complies with national data sovereignty and cybersecurity policies, reducing reliance on foreign tools while ensuring AI knowledge stays local, trusted, and secure.

NurAI is available for download on nur-ai.zetrix.com

About Zetrix AI Berhad

Zetrix AI Berhad (“Zetrix AI”), formerly known as MY E.G. Services Berhad, is leading the way in the deployment of blockchain technology and artificial intelligence in powering the public and private sectors across ASEAN. Headquartered in Malaysia, Zetrix AI started operations in 2000 as a pioneer in the provision of electronic government services and complementary commercial offerings in its home country. Today, it has advanced to the forefront of technology transformation in the broader region, leveraging its Layer-1 blockchain platform Zetrix and embracing the convergence of Web3, AI and robotics to enable optimally-efficient, intelligent and secure cross-border transactions, digital identity interoperability and automation solutions that seamlessly connect peoples, businesses and governments.

SOURCE Zetrix AI Berhad

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