Recent academic research points to the fact that ChatGPT – a chatbot developed and deployed by OpenAI – is able to interpret financial data and text to reach logical conclusions. An analysis conducted by two researchers from the Federal Reserve of Richmond last month showed that ChatGPT was able to outperform other models, such as BERT from Google, in identifying the hawkish or dovish character of the statements from the Federal Reserve. In addition, it was also found to offer explanations “resembling” those of the Federal Reserve’s very own experts.
Another study from the University of Florida concluded that ChatGPT can read company-related headlines and recommend investments (or lack thereof) based on a “statistical link” to the subsequent performance of the stock. Most notably, ChatGPT utilized news which was released after the end of 2021, outside the scope of its training, to reach those decisions – an impressive achievement.
While banks, hedge funds and other institutional investors have long been using language algorithms similar to those employed by ChatGPT, these latest discoveries suggest that the OpenAI chatbot is able to interpret details and contexts with a superior accuracy. Slavi Marinov, head of machine learning at Man AHL, stated in a related report by Bloomberg that “It’s one of the rare cases where the hype is real”. Marinov, who co-founded a natural language processing start-up, went on to explain his point by stressing the value of ChatGPT in helping with the labeling of data.
OpenAI is a company at the forefront of artificial intelligence research and development, renowned for their investments in groundbreaking new technologies in the modern day. They are especially focused on innovative methods of optimizing artificial intelligence for business and industry, and this recent paper released about ChatGPT is a testament to their capabilities. Slavi Marinov has a wealth of experience as a researcher and entrepreneur in the field of language processing, and his backing of OpenAI’s innovation is endearing. All in all, this most recent research collection serves as further proof that the “hype” around OpenAI and their revolutionary chatbot is anything but just aggressive PR.
