Israeli startup 42AI has emerged from stealth with $62.5 million in seed funding, introducing a transformer-based behavioral world model designed to predict human decision probabilities and trader responses in financial markets using psychological and behavioral datasets.

According to its founders, Amit Gal-Or and Ehud Ezra, the system doesn't just look at what someone has done in the past. Instead, it tries to measure underlying psychological trends by analyzing various everyday actions, such as account creations, support calls, money transfers, and stock purchases.

The model took three years to develop, drawing on research in psychology, neuroscience and genetics, as well as input from experts and Nobel laureate Dan Shechtman.…