Recent studies suggest that OpenAI’s ChatGPT can accurately interpret statements from the Federal Reserve and anticipate stock moves in response to corporate news. According to researchers at the Richmond Fed, ChatGPT was tested alongside GPT-4 and BERT on 500 sentences from Fed policy statements and outclassed BERT when it came to understanding what each sentence meant. The AI was even able to explain why it came to these conclusions, showing similar reasoning capabilities to humans.
A separate study conducted by the University of Florida tackled the more challenging prospect of ChatGPT predicting stock moves in response to news. Taking headlines from October 2021 and beyond and prompting the AI to give investing advice, the results showed that ChatGPT scores had a strong correlation to stock market moves. For example, when asked what “Rimini Street Fined $630,000 in Case Against Oracle” meant for Oracle stock, the AI correctly identified a rise in investor confidence, owing to Oracle’s increased legal protection. These results highlight the possibilities of incorporating ChatGPT into investment strategies.
OpenAI is a research laboratory funded by corporate partners, including Microsoft and Amazon, that specializes in the development of artificial intelligence (AI) and natural language processing (NLP). Founded by Elon Musk and Sam Altman, OpenAI is widely believed to be at the forefront of the global AI war. OpenAI’s ChatGPT is just one of the many projects they have either led or taken part in, with their primary focus being to develop AI safety, as well as research into machine learning, robotics, and general AI technology.
In the world of AI, few compare to Geoffrey Hinton, the world-renowned computer scientist who is often referred to as the “Godfather of AI.” After founding the Toronto-based AI research firm Geometric Intelligence, now owned by Uber, Hinton played a huge role in OpenAI’s formation by convincing other big-name investors to join. Hinton has also been a professor of computer science at both the University of Toronto and the University of Cambridge. He is credited with revolutionizing the field of Machine Learning, particularly through his breakthrough Neural Networks approach. In total, Hinton has earned numerous awards and honors across an illustrious career.
