Methodology
The AI Fear & Greed Index aggregates two complementary signals to provide a balanced view of sentiment:
- News Sentiment: Daily AI-related articles are analyzed and assigned a sentiment score on a -1 (fear) to +1 (greed) scale. Duplicate URLs and rewrites are deduplicated using host+path logic.
- Community Sentiment: Visitors vote once per day to indicate fear, neutral, or greed. We compute same-day and rolling multi-day averages to smooth noise.
Source Selection
We prioritize reputable publications and high-signal community sources. Our aim is to capture material changes in AI capability, deployment, safety, regulation, and market impact.
Scoring and Normalization
- Article sentiment is normalized to -1 or +1 for aggregation consistency in the daily index.
- Duplicates across days are filtered so a single story does not over-weight the index.
- Community votes are averaged for today, 3-day, and 5-day windows.
Update Cadence
New data is generated once per day.
Limitations
- Sentiment scoring is an approximation and may not capture nuanced contexts. We are constantly improving and tweaking our algorithm.
- Coverage varies by day; low article volume can reduce precision.
- Community votes reflect our audience and may not be representative of the broader public.
Planned Improvements
- Richer topic tagging and category-level sentiment tracking (safety, regulation, capability, business).
- Longer horizon aggregates (7-day, 30-day) and comparative baselines.
- Additional source expansion and transparency dashboards.