Hanwha Life showcases AI-driven arbitrage model with Stanford at major finance AI conference

A researcher from Hanwha Life’s AI Research Center presents findings from a joint study with Stanford University’s Human-Centered AI at ICAIF 2025, a four-day conference that kicked off Saturday in Singapore. Courtesy of Hanwha Life

Hanwha Life's AI Research Center presented a co-authored research paper with Stanford University's Human-Centered AI on an AI-driven arbitrage model at a major global financial AI conference in Singapore earlier this week, the insurer said Wednesday.

The International Conference on AI in Finance (ICAIF), a four-day event that began last Saturday, is hosted by the Association for Computing Machinery. The conference is considered one of the most prominent international gatherings in the financial AI field, drawing participation from global financial institutions such as J.P. Morgan, Morgan Stanley and BlackRock, as well as researchers from leading universities worldwide.

This year’s ICAIF received 349 submissions, of which 113 were accepted, resulting in an acceptance rate of 32.4 percent. Hanwha Life’s paper ranked in the top 15.5 percent of all submissions and was selected for the Oral Presentation session, which is reserved for standout research.

The study, titled “Attention Factors for Statistical Arbitrage,” examines how the attention mechanism — widely used in advanced generative AI models — can be applied to financial factor modeling.

The attention method identifies meaningful signals within large datasets, while factor models capture the common drivers behind stock price movements. In validation tests using historical U.S. equity market data, the proposed model generated strong risk-adjusted returns, underscoring its potential effectiveness.

“The study highlights how AI can detect subtle signals that conventional financial models often miss, thereby revealing new investment opportunities,” a Hanwha Life official said. “We plan to further expand the role of our AI Research Center by advancing applied research that translates technological innovation into tangible investment outcomes.”