LG AI Research and London Stock Exchange Group (LSEG) on the 18th introduced AEFS, an artificial intelligence (AI)-based market forecasting model jointly developed by the two companies, to Korean financial institutions and securities firms at the British Embassy in Korea.
The service analyzes more than 5,000 stocks listed on the New York Stock Exchange (NYSE) in the United States every day and provides macroeconomic indicators, real-time prices, and financial statements. The two companies already launched in September a service that predicts the stock market by leveraging LSEG's data on the basis of LG AI Research's EXAONE-BI (EXAONE (LG AI Research) Business Intelligence). They are currently securing potential clients and conducting testing in the United States, Europe, Japan, and Korea.
Lee Hwa-yeong, head of AI business development at LG AI Research, said, "We usually go through a proof-of-concept (POC) period of about two to three months, and if performance is verified, we sign a contract," adding, "We expect full-scale contracts to be signed from the first half of next year." LG AI Research and LSEG plan to expand into the Middle East, China, and Southeast Asia next year.
Lee said, "AEFS is a subscription model, with a principle of a minimum two-year contract based on monthly service," and added, "Significant business impact is expected as it is an AI business listed in LSEG's catalog, which has a data feed business of about 7 trillion won and 45,000 customers."
The AI-based market forecasting model developed by the two companies differentiates itself by combining Deep Learning technology with an LLM, unlike other services that apply Machine Learning or Deep Learning alone. Another differentiator is that it looks not only at large-cap stocks but also at nano caps, which are ultra-micro caps. It also goes beyond typically providing only scores or directionality to offer detailed scores and explanations.
LG AI Research said, "LG and London Stock Exchange Group are opening a market not for a service that sells financial data (DaaS) but for a service that sells insights (IaaS)."