New AI-powered tools have been developed and become popular in many sectors of the economy due to their incredible ability to make life and work easier and faster. One such tool is OpenAI’s Chat Generative Pre-Trained Transformer (ChatGPT), a bot and language tool powered by AI technology. This remarkable tool is being used for many purposes, including providing feedback, having conversations and admitting when it is wrong.
Recent studies have used this incredible tool to interpret federal reserve statements to analyse headlines. These two research studies, which were published in April, have revealed that ChatGPT is the closest to humans when it comes to understanding federal reserve statements and analysing headlines.
The results of these two studies have raised the question in the stock market: can investors use ChatGPT to profit from shares? The answer may be yes, since the research shows that ChatGPT could potentially be used in the coming years to trade signals in the markets, such as forex. It wasFurther highlighted by Lopez-Lira and Tang in their paper, “Can ChatGPT Forecast Stock Price Movements? Return Predictability and Large Language Models” that ChatGPT was able to study all components of the news and understand headline beyond 2021.
This could be a helpful tool for investors as it offers the chance to make a quick decision based on its provided analysis on news and headlines. Despite the benefits that ChatGPT can bring for the stock market, investors must remember that utilization of AI does not eliminate the risks that are associated with investing and that they would need to do their own monitoring and analyses.
The person mentioned in this article is A. Lopez-Lira and Y.Tang, co-authors of the paper titled “Can ChatGPT Forecast Stock Price Movements? Return Predictability and Large Language Models”
The company mentioned in this article is OpenAI, the computer research laboratory focused on creating science-based, broad general intelligence. OpenAI was founded in 2015 and funded by industry leaders in Artificial Intelligence, including Microsoft, Amazon Web Services, and NVIDIA. OpenAI’s team of research scientists focus on developing machine learning software and AI technologies to solve challenging and important problems that can benefit mankind.OpenAI released Chat Generative Pre-Trained Transformer (ChatGPT) in 2022, a bot and language tool powered by AI technology that allows a user to engage in a dialogue like one is conversing with a human.
