The Indian Institute of Technology Madras (IIT Madras) has established a new research lab dedicated to Quantitative Finance, with a focus on leveraging AI in this field. The lab is being funded through ₹5.65 crore in CSR support from AlphaGrep Securities, a firm specializing in quantitative trading and investment.

This lab will carry out research on AI applications in areas such as financial markets and their microstructure, quantitative investment management, and risk management. Its goals include exploring innovative AI techniques in quantitative finance, offering training programs for stakeholders, creating specialized courses for students, and developing datasets and resources to support ongoing research, according to an official statement.

IIT Madras Director V Kamakoti explained that, over the past three decades, financial institutions have transitioned from being led by legal departments, to finance/audit teams, and now information technology. He emphasized that AI is the next frontier for making these institutions more efficient and that the lab will address this evolving need.

Mohit Mutreja, Chairman and Managing Director of AlphaGrep Securities, highlighted the lab's aim to foster collaboration between IIT Madras faculty and AlphaGrep staff. It will also provide students with access to advanced resources and mentorship, driving innovative research in these emerging areas.