OpenAI’s ChatGPT has been praised for its potential to interpret Federal Reserve policy statements and make bold stock market predictions derived from corporate news.
Recent studies have reflected this promising accuracy.
A Richmond Fed paper discussed how ChatGPT was able to intelligently sort 500 Fed statements across five categories — dovish, mostly dovish, neutral, mostly hawkish, and hawkish — in the same way four human reviewers did. Furthermore, it was able to offer justification for individual decisions, as demonstrated by the AI’s classification of a statement as hawkish due to its hint at a future normalization of balance sheets. The study also indicated that GPT-4, released in March 2021, works with greater accuracy than GPT-3.
University of Florida researchers earned similar results, suggesting that ChatGPT could make sound stock market investments from news headlines alone. For example, ChatGPT was presented with the headline “Rimini Street Fined $630,000 in Case Against Oracle,” and the AI judged investor confidence would, as a result, increase, allowing the company to fortify protection of its intellectual property.
ChatGPT’s ability to comprehend the meaning behind the statements of influential entities, such as the Federal Reserve, and glean actionable insight from external news, makes it an increasingly popular tool in the world of finance.
OpenAI is a research lab based in San Francisco and was founded in 2015 by Sam Altman, Greg Brockman and Eliezer Yudkowsky. Their mission is to ensure that artificial general intelligence (AGI) “benefits all of humanity.” OpenAI has been advanced by contributions from a list of investors including Elon Musk and Jeff Bezos.
Sam Altman is the former president and co-chairman at OpenAI. He is currently the president of Y Combinator, a startup accelerator, and has held numerous other prominent roles in tech and tech investing. Sam and his team at OpenAI are continuing to work hard to innovate the world of artificial intelligence and gage the capabilities of AI and how they can be utilized more efficiently.
