MSCI, a mission-critical decision support tools and services provider, has introduced MSCI AI Portfolio Insights in a move to transform risk analytics for the future.

The new offering is designed to help investors in better discovering and managing potential emerging risks posed by dynamic markets more effectively.

It will leverage generative artificial intelligence (GenAI) along with MSCI’s analytics tools and advanced modelling technologies.

By supporting to identify and analyse the most salient data in risk reports before the working day starts, MSCI AI Portfolio Insights will create efficiencies and deliver insights to institutional risk and portfolio managers.

The new offering’s interactive capabilities will enable investors to delve deeper into portfolio changes without requiring code or extensive dropdown menus in the user interface.

Besides, MSCI AI Portfolio Insights integrates generated text with modern dashboards and cloud-based technology to improve communication and efficiency in risk and portfolio management.

The tools are expected to help risk management teams at asset managers, hedge funds, and asset owners to boost collaboration across their firm’s investment teams.

According to MSCI, its new solution utilises proprietary algorithms for curating huge volumes of data, highlighting the key factors affecting risk and performance and linking them to market events.

It also includes an AI agent that helps risk managers in comprehending and decomposing the risk and performance drivers.

The assistant is capable of answering complex questions about portfolios based on natural language interaction.

MSCI chief research officer Ashley Lester said: “Institutional investors both can and must shift their risk teams from being largely control-oriented to also being an investment-focused function.

“With MSCI AI Portfolio Insights, we are transforming risk reporting to make it more insightful and more accessible to investment decision makers. Risk should not be just about monitoring: it should be about providing investors with actionable insights.”

The company has also unveiled the Macro Finance Analyzer. This new tool utilises MSCI’s financial modelling and stress-testing capabilities.

It is designed to evaluate the way changes in macroeconomic conditions impact a portfolio’s risks and returns across various asset classes, aiding investors in making informed decisions on asset allocations.