OpenAI recently released itsChatGPT), a revolutionary language model which has shown great promise for various tasks. Now two separate studies have found that this AI model can decode Federal Reserve statements, and also accurately forecast stock market trends merely by reading headlines, according to Markets Insider.
Deciphering the language used in official Federal Reserve statements can be tricky due to its use of specialist terms and complex economic concepts. To test the model’s performance in this regard, researchers from the Richmond Fed evaluated OpenAI’s ChatGPT-3 and GPT-4 models against BERT, a language model commonly used in the finance sector. The AI was asked to classify 500 sentences into five categories – dovish, mostly dovish, neutral, mostly hawkish, and hawkish – and it outperformed BERT without prior training, achieving results similar to those of human reviewers. Additionally, the AI was even able to explain its decisions sensibly.
On top of this, the AI was put to the test for its ability to predict stock market trends, again with the help of headlines, in a study conducted by University of Florida researchers. They compared the results of the ChatGPT model with actual stock market movements, and found that there was a strong correlation between ChatGPT’s responses and stock movements, suggesting the model can prove extremely useful for investors. For example, the AI model correctly predicted the effects of the headline reading “Rimini Street Fined $630,000 in Case Against Oracle” – that it was likely to increase investor trust in Oracle.
Bloomberg, a leading financial news organisation, is also launching an AI model based on OpenAI’s GPT, called Bloomberg GPT. This project will be able to answer detailed financial questions and assess the bullish or bearish implications of a news headline. Its data set will include 40 years’ worth of financial language data, covering public records, press releases, Bloomberg News stories and much more.
OpenAI’s ChatGPT has been gaining traction for its astoundingly precise language technology, and these studies only add to the list of ways in which the model can be utilized. With more research there are sure to be further exciting applications of this technology.
OpenAI is a not-for-profit artificial intelligence research company by Elon Musk, Sam Altman, Greg Brockman, and the world’s leading specialists in AI. Their mission is to ensure that artificial general intelligence benefits all of humanity. Elon Musk is the CEO of both Tesla and SpaceX, two of the most successful and cutting-edge companies in the world. Sam Altman is the president of the esteemed startup accelerator Y Combinator, and Greg Brockman is the CTO of OpenAI. All three have ambitious visions for the future of AI and automation.
