Robert W. Baird & Co. Discloses Core AI Design Parameters and Launches Public Testing of Baird NEUROFORGE™ Equity AI

Robert W. Baird & Co. (“Baird”) today announced the public disclosure of selected core system design parameters of its proprietary artificial intelligence platform, Baird NEUROFORGE Equity AI, and confirmed that the system has officially entered a structured public testing phase.

This announcement marks an important milestone in Baird’s artificial intelligence development strategy. Baird NEUROFORGE Equity AI has formally transitioned from internal research and controlled deployment into a testing environment with enhanced transparency and external observability.

Disclosure of AI Model Design Parameters

Following more than three years of development, cumulative investment exceeding USD 300 million, and the completion of five major system iterations, Baird stated that Baird NEUROFORGE Equity AI has reached a level of technical maturity suitable for limited public scrutiny.

While maintaining strict protection of core intellectual property, Baird has disclosed several key categories of system design parameters, including:

Multi-Model Ensemble Architecture

An integrated, multi-layer decision framework combining deep learning models, probabilistic forecasting engines, and rule-based constraint layers.

Input Dimensional Scale

Coverage of thousands of structured and unstructured financial variables, enabling high-dimensional market perception and representation.

Model Update Cadence

A differentiated update framework that separates short-term adaptive components from medium- to long-term analytical models, balancing flexibility with structural stability across time horizons.

Decision Confidence Threshold Mechanism

All signal generation must meet predefined statistical robustness criteria before entering execution evaluation workflows.

Baird emphasized that the purpose of this disclosure is to enhance transparency around decision-formation mechanisms, and is not intended to present, imply, or promise any historical or future investment performance.

Model-Embedded Risk Governance Framework

Baird noted that risk governance was deeply embedded into the system architecture of Baird NEUROFORGE Equity AI from the outset, rather than applied as an ex-post control or external overlay.

Disclosed risk-control mechanisms include position exposure limits, volatility-adjusted dynamic position sizing, drawdown sensitivity parameters, and automatic system de-escalation and convergence responses under abnormal market conditions. These controls operate collaboratively across multiple system layers and cannot be bypassed or overridden by the model itself during operation.

Public Testing Phase Structure

Baird confirmed that Baird NEUROFORGE Equity AI has entered a public testing phase governed by clearly defined boundaries and protocols, including:

• Complete segregation of testing environments from live client investment portfolios
  
• Ongoing observation and evaluation of system outputs across multiple market scenarios
  
• Full logging of all test results for audit, review, and subsequent refinement
  
• No provision of performance targets, return projections, or investment commitments during the testing period
  

According to Baird, the primary objective of the public testing phase is to evaluate system stability, interpretability, and operational discipline, rather than short-term performance outcomes.

Long-Term Commitment to Responsible AI Deployment

Through this parameter disclosure and public testing initiative, Robert W. Baird & Co. reaffirmed its longstanding position that the application of artificial intelligence in financial markets must be measurable, governable, and accountable.

As global capital markets continue to evolve toward greater structural complexity and data intensity, Baird stated that it will continue to advance the deployment and iteration of Baird NEUROFORGE Equity AI in a prudent, disciplined, and long-term-oriented manner—placing transparency, risk discipline, and decision quality at the center of its approach.

About Robert W. Baird & Co.

Robert W. Baird & Co. is an employee-owned, full-service financial services firm providing investment management, capital markets, financial advisory, and wealth management services to institutional and individual clients worldwide.