Ai Funds Launches BAILA® 3.0: The Next Generation of its AI Investment Model

BAILA 3.0 gives advisors an AI investment strategist, freeing them to focus on client relationships and growing their practice

SAUSALITO, Calif., Feb. 24, 2026 (GLOBE NEWSWIRE) -- Ai Funds, Inc., a registered investment advisor specializing in AI-Managed investment strategies, today announced the launch of BAILA 3.0, the latest version of its proprietary investment model. BAILA (Bayesian AI Learning Algorithm) is an AI Investment Model (AIM) that serves as the investment strategist within each strategy it powers.

Today, most investment firms use AI to assist human managers, providing data or suggestions for them to act on. BAILA represents a new category of AI-Managed Investing, where the AI makes the investment decisions, delivering fully constructed model portfolios. It handles tactical allocation decisively and systematically, free from the emotional biases of human decision-making. Live since 2019, BAILA has helped advisors navigate multiple market cycles by applying pattern recognition to match current conditions with past market environments. While BAILA handles the systematic work of tactical allocation, advisors gain time to focus on what clients value most: financial planning, personalized guidance, and the relationships that grow a practice.

“With BAILA 3.0, we've moved beyond all-or-nothing market calls,” said Tal Schwartz, Ph.D., CEO and Founder of Ai Funds. “Advisors now have an AI strategist designed to position portfolios across a spectrum of risk with a refined one-week outlook.”

Key Enhancements in BAILA 3.0

• Adaptive Risk Positioning: Previous versions signaled either fully risk-on or fully risk-off. BAILA 3.0 can now position portfolios anywhere along the spectrum from fully defensive to fully invested, reflecting the nuance of real market conditions.
• Refined Prediction Horizon: BAILA 3.0 has been calibrated for a consistent one-week forward outlook, aligning with rebalancing frequency and providing advisors with clarity when implementing signals.
• Advanced Portfolio Construction: BAILA 3.0 generates strategies from thousands of assets using AI optimization techniques, identifying portfolio combinations that are elusive for traditional quantitative methods.
• Alpha-Focused Risk Framework: BAILA 3.0 seeks to maximize alpha while minimizing downside exposure using human-centric risk measures informed by behavioral finance, recognizing that investors experience gains and losses asymmetrically.

BAILA 3.0 powers the full suite of Ai Funds strategies: Ai-Core (five risk levels), Ai-Index (major market indices), Ai-Unconstrained, and Ai-TaxO (tax-aware stock portfolios). Financial advisors can contact Ai Funds to learn more about incorporating AI-Managed strategies.

About Ai Funds

Founded in 2018, Ai Funds, Inc. is a California-registered investment advisor (CRD# 328886) specializing in AI-Managed investment strategies. The firm’s proprietary BAILA system (first launched in 2019) is an AI Investment Model (AIM) that serves as an investment strategist, analyzing 30+ years of market data to make tactical allocation decisions systematically. Built on Bayesian statistics and machine learning, BAILA powers AI-Managed strategies where AI drives the investment decisions. Ai Funds currently provides model portfolios for hundreds of millions of dollars in assets across dozens of RIA firms. For more information, visit aifunds.com.

Media Contact

DJ Morrissey - Craft & Capital
dj@craftandcapital.com
(201) 398-8307

This is not an offer to buy or sell securities. No investment process is free of risk, and there is no guarantee that the investment process or the investment opportunities referenced herein will be profitable. Past performance is neither indicative nor a guarantee of future results. The investment opportunities referenced herein may not be suitable for all investors. All data or other information referenced herein is from sources believed to be reliable. Any opinions, news, research, analyses, prices, or other data or information contained in this presentation is provided as general market commentary and does not constitute investment advice. Ai Funds Inc. makes no representations or warranties express or implied as to the accuracy or completeness of the information. Ai Funds Inc. assumes no liability for any action made or taken in reliance on or relating in any way to this information. The information is provided as of the date referenced in the document. Such data and other information are subject to change without notice. This document was created for informational purposes only.

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