ChatGPT: The AI tool that can predict stock prices better than humans
The capabilities of AI solutions like ChatGPT developed by OpenAI are not limited to composing natural-sounding texts. It has now been discovered that the chatbot can predict stock prices with great accuracy. This has caught the attention of many in the financial industry, as chatbots offer a more efficient and cost-effective alternative to human analysts.
Alejandro Lopez-Lira, a finance professor at the University of Florida, conducted an experiment to test the reliability of ChatGPT in predicting stock prices. He fed the chatbot headlines from the current press and asked it to predict how these would affect the stock price. The results were promising - ChatGPT was significantly more reliable than relying on mere chance or human intuition.
Furthermore, Lopez-Lira's experiment revealed that ChatGPT could analyze more than 50,000 current headlines and accurately predict whether the share price would develop positively or negatively as a result of the news. This suggests that companies could save a lot of money by simply consulting chatbots like ChatGPT instead of relying on expensive human analysts.
The efficiency and accuracy of chatbots like ChatGPT are expected to disrupt the financial industry. According to a report by CNBC, 35% of the industry could be threatened as companies turn to AI solutions for more reliable and cost-effective predictions.
However, Lopez-Lira also raises a concern that as the use of ChatGPT as a stock oracle becomes more widespread, its reliability is likely to decline. Nevertheless, the launch of ChatGPT 4, which is supposed to work more reliably and faster, suggests that AI solutions will continue to improve and offer more benefits to the financial industry.
Overall, the capabilities of ChatGPT to predict stock prices better than humans offer promising opportunities for the financial industry to cut costs and improve accuracy.
