STP Institute

Pimco Adopts AI Agents

Pimco has developed artificial intelligence capabilities, including “AI agents” to reduce errors occurring in back-office processes – and the fixed income giant hopes other industry firms will embrace its approach.

 The nearly $2 trillion asset manager teamed up with fintech shop OnCorps AI to build algorithms that detect accounting, trading and other operational errors in the reconciliation process. OnCorps uses algorithms, large language models and “AI agents” to identify and explain errors or other unresolved issues to portfolio managers and analysts via a ChatGPT-like messaging system as well as text and email, OnCorps CEO Bob Suh told FundFire.

AI agents are a form of Agentic AI – a relatively new type of artificial intelligence that builds upon generative AI, in that it can make decisions independently without relying on human prompts.

The industry will be watching how Pimco’s partnership with OnCorps shakes out, Jim Lewis, STP Investment Services‘ head of technology, told FundFire.

“This is going to be a very interesting test of the market to see if it is ready for an algo-as-a-service,” he said. “If this gets some traction, what it leads to could be way more interesting than where it started.”

Read what Jim and other subject matter experts had to say in FundFire here.