AI Funds Decline—Then Recover—During Market Turmoil

Traders that use machine learning have had to adjust strategies and rely less on historical data to train models

Hedge funds that use artificial intelligence models to suggest trades and stock picks declined when stock markets unraveled in late February, but now have largely recovered, according to benchmarks tracking these strategies.

Yet market experts warn the unpredictable nature of the economy these days could trip up some algorithms that continue to rely on data gathered during better times.