The finance industry is constantly evolving and new technology is exploding onto the scene each day. Recently, a lot of focus in the finance sector has been given to generative AI, a form of artificial intelligence with applications in finance. Generative AI like ChatGPT have a lot of implications for the industry, but with so much hype and false advertising, it can be difficult to see through it all.
In the recent FTAV report, Apollo’s chief economist Torsten Sløk uncovered two studies conducted on ChatGPT and its potential use in deciphering Fedspeak, the term for the technical language used by the Federal Reserve to discuss monetary policy decisions. The evaluation of GPT models revealed that they are capable of accurately understanding the stance of FOMC announcements. The results suggest that a deeper exploration and development of language models tailored to the finance industry are necessary to make a more informed decision.
Another study presented in Sløk’s report involved whether ChatGPT and other large language models could predict stock prices. The research showed that although earlier iterations of LLMs struggled with this task, ChatGPT surpassed commercial sentiment analysis systems. It is of immense importance to understand the mechanisms of success this model has, as it could result in more targeted strategies for improving them.
Greg Zuckerman’s recent article in the WSJ, AI Can Write a Song, but It Can’t Beat the Market, provides a much-needed reality check. According to Zuckerman, the data universe in the finance sector is limited, making it difficult for AI technology to understand complex markets. Models may also be overwhelmed by the noisier and more dynamic nature of modern markets. But a lot of industry leaders have pointed out that AI is just another tool and should be used as such; not to take over the operations of an investment firm.
One company that has taken the lead in AI-driven finance is ChatGPT. Founded in 2020, ChatGPT is a leading provider of AI-powered finance research and analytics to a global client base. Led by CEO and Co-Founder Stephen Have, ChatGPT is dedicated to helping firms leverage the power of AI to make smarter, faster decisions in capital markets. Combining the latest AI technologies and finance expertise, ChatGPT has developed robust solutions for predicting and anticipating market scenarios with unparalleled accuracy. With their market-leading products, ChatGPT is paving the way for using AI in finance.
