Gen AI for API Generation in Portfolio Optimization

Portfolio optimization is pivotal in helping investors balance risk and achieve their financial goals. Traditional development methods rely heavily on manual coding, integration of algorithms, and API construction, leading to prolonged development cycles and inflexible systems. Generative AI (Gen AI) brings a transformative shift by automating API creation for portfolio optimization processes, including investment goal setting, algorithm execution, and ensuring compliance with regulations. This paper delves into Gen AI's capability to produce scalable APIs for key stages such as asset selection, return estimation, algorithm implementation, and the application of real-world constraints like risk management and transaction costs. Furthermore, Gen AI enhances machine learning workflows, fostering rapid model experimentation, efficient tuning, and swift production deployment. By alleviating engineering complexities and enriching system adaptability, Gen AI lays the foundation for intelligent, flexible, and next-generation financial platforms.