Deutsche Bank is putting artificial intelligence to the test of its investment skills. The bank asked the dbLumina AI model to select a basket of funds from the most popular funds used by typical retail investors as of the end of November. Research analyst Luke Templeman provided dbLumina with a week of daily market analysis from late November, the same one his team uses to create thematic indicators. “Decisions are based on our daily market commentary and other information, and take into account market themes and sentiment,” Templeman said in a note to clients Monday. “I was a little surprised by the initial allocation, but the proof will be there over the next year.” Templeman also provided dbLumina with some market data, including the past performance of specific ETFs that track broader markets. Analysts say Germany’s dbLumina model can review decisions weekly using new information. Templeman said dbLumina determined that investors were the most “irrational” in April, when markets were in turmoil following President Donald Trump’s announcement of high tariffs. As a result, many investors did not own enough shares to benefit from the subsequent market rebound, Templeman said. “Can the average investor use AI to beat the market?” Templeman said. “We aim to figure that out.”
