Fund managers can now build high-performing portfolios they can actually explain

Researchers developed a new computer program that builds investment portfolios. This program picks stocks that perform well and also explains why it chose them.

For years, investment firms have struggled to use advanced AI because the models are hard to understand. This paper shows a way to build high-performing portfolios where the AI can explain its decisions. This means fund managers can get the benefits of AI without having to guess why it picked certain stocks.