FUNDfire April 2, 2025 - 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. 

"An agent can literally conduct the task work of a human and explain what it's done," Suh said. "We're very cautious, so we don't allow it to be fully autonomous." 

The partnership, which started five years ago, involved training algorithms to "reduce the labor load and better identify errors," such as determining the probability of a Pimco fixed income corporate bond having a paydown or income error, Suh said. 

‍