Harnessing AI for Enhanced Investment Strategies

Founded in 2019, Aisot is a fintech company pioneering machine learning and artificial intelligence to enhance investment decision-making. By developing proprietary quantitative and ML models, Aisot generates advanced forecasts, risk assessments, and portfolio recommendations to optimize returns for equity and cryptocurrency assets. 

According to Stefan Klauser, Aisot’s co-founder and CEO, the financial industry still faces huge challenges when using AI for investment decision-making, particularly around forecasting asset prices and managing portfolio risk. Aisot's founders, however, had identified an opportunity after their early research showed machine learning could meaningfully improve predictions. "We were able to show that we could reduce forecasting errors in Bitcoin’s volatility by around 50%,” Klauser says.

Building customized AI solutions requires extensive data engineering and model development expertise that is only available at some firms. Aisot was founded to address this challenge, developing pre-trained quantitative and ML models and analytics tools accessible both to sophisticated quant shops and non-technical end users.

“We quickly saw the need to become the go-to spot for machine learning models and data in finance,” adds Lukas Sieber, Aisot’s head of marketing “It's for everyone – the ones who can't get the top machine learning pros on their team and for those who can. Because, it's all about being that independent, third-party place anyone can turn to.”

Broadening access

The company aims to democratize access to machine learning's benefits by making its platform open to investment managers, asset managers, portfolio managers, wealth advisors or anyone looking to generate customized investment strategies that show performance, even under restrictive scenarios. Users of the Aisot AI Insights Platform can input their target and restriction parameters and the algorithm provides its investment insights based on the user’s preferences. 

To provide a tangible demonstration of this in action, Aisot launched a live trading reference portfolio in October 2023. This crypto-focused product invests in 21 coins/tokens selected by Aisot's proprietary AI engine and rebalances on a monthly basis. 

"Everybody says backtesting is not good enough, so we explicitly built products to showcase what the technology can do,” says Sieber.

This real-money showcase provides compelling evidence for prospective clients of how Aisot's techniques for combining structured and unstructured market data can optimize returns while managing downside risk across changing crypto market conditions. 

Adds Sieber: "We give the engine a chance to invest everything between zero and 30% into each of the coins and tokens and cash at a maximum of 45%, and we just trade one-to-one exactly what the machine tells us monthly."

Facilitating the Vision

Because it wanted a live demo, Aisot looked to bring the reference portfolio with its machine-learning strategies to market. For this, the company turned to GenTwo. 

“GenTwo provides the securitization capabilities we needed for Aisot's reference portfolio to operate as a live trading product. Thanks to GenTwo, investors can easily participate in our innovative strategy. By investing in the product ourselves, we also demonstrate our confidence in the product to the market,” says Klauser.

Sieber says the ability to quickly turn Aisot’s ML investment recommendations into live products is a powerful addition to Aisot’s offering. For these reasons, the company plans to integrate GenTwo’s securitization offering into its platform. “Our vision is that users of our platform can not only create strong portfolios for themselves, but also great products that they can sell to their clients or investors. GenTwo is a great partner to  do this seamlessly and at scale.”