OpenAI’s ChatGPT is an incredibly versatile tool that could be employed for a variety of purposes. From providing customer support to facilitating content creation, creative writing, and language learning, ChatGPT — powered by GPT (Generative Pre-trained Transformer), one of the most advanced language processing algorithms available — guarantees quality and reliability. Nowadays, the popular tool might help people make money — with caution.
Alejandro Lopez-Lira, a financial professor at the University of Florida, proposed that deploying large language models (LLMs) could be utilized to predict stock prices. This application of technology could have a major economic impact, as reported by CNBC.
Last month, the firm Goldman Sachs (NYSE: GS) estimated that AI can potentially wipe out 35% of jobs in the financial industry. It was then that professor Lopez-Lira spotted that ChatGPT’s analysis of financial headlines might be able to accurately predict stock direction which could consequently lead to higher returns. However, the finding needs to be peer-reviewed for further validity.
At its current stage, ChatGPT is incapable of creating a person’s sudden wealth. Moreover, the professor pointed out that the stockmarket should become more efficient when more people rely on tools like ChatGPT to monitor headlines, diminishing the predicting power of the algorithm in the long-run accuracy.
The study of professor Lopez-Lira has several drawbacks. Primarius, ChatGPT did not process any calculations nor looking into target stock prices. Additionally, the model has limitations when it comes to arithmetics.
It is interesting to note that OpenAI’s ChatGPT is an extremely powerful automated tool that could be employed in various scenarios. Whether it is for customer support, content generation, creative writing, or language learning, ChatGPT would cover the task with guaranteed quality and reliability. Furthermore, the tool has potential power to accurately predict the direction of stock prices even without analyzing calculations or target stock prices, which could result in improved returns. However, this might not be the case in a couple of years as the market would become more efficient if everybody had access to this tool.
About OpenAI:
OpenAI is an American artificial intelligence (AI) research laboratory based in San Francisco, California. Founded in 2015, the company is best known for producing tools such as GPT-3, a natural language processing (NLP) model capable of performing a wide range of tasks. OpenAI is funded by tech giants such as Amazon, Microsoft, and Google.
About Alejandro Lopez-Lira:
Alejandro Lopez-Lira is a finance professor at the University of Florida and a highly regarded specialist in the financial industry. His research focuses on artificial intelligence (AI) applications and the prediction of stock prices. Additionally, Lopez-Lira frequently contributes to humanitarian projects and is actively involved in efforts to improve the education of the younger generations.
