ChatGPT can beat the stock market, professor claims
According to a group of experts from the University of Florida, Artificial Intelligence (AI) chatbots can predict stock prices' movements by analyzing news headlines. The experts analyzed ChatGPT, an AI algorithm, and found out that it was better at predicting whether a news item would increase or decrease share prices than other "sentiment analysis" tools used by financial analysts.
ChatGPT, which is developed by Silicon Valley start-up OpenAI, is a "large language model" that has trained by digesting billions of pages of internet articles and millions of books. Analysts at Goldman Sachs have predicted that AI algorithms could replace as many as 300 million jobs. However, they are unlikely to replace financial analysts and stock pickers very soon. The tests were performed on past market data rather than up-to-date live information.
Although large language models like ChatGPT are poor at analyzing numbers, they still have significant implications on the employment of financial analysts. One of the authors of the paper, Alejandro Lopez-Lira, believes that financial analysts' employment depends on whether companies want to pay them or supply textual information into a model.
Despite its shortcomings, generative AI is making waves in several industries. One of the world's largest marketing agencies, BlueFocus, has said it will "fully and indefinitely" stop hiring human creative staff to replace their jobs with ChatGPT-style technology. BlueFocus is ranked as the 11th biggest marketing agency globally and said no more outsourced staff would be hired in creative design or copywriting roles "to fully embrace generative AI".
UK advertising agencies are already using AI to create campaigns and simplify back-end systems. Ad giant WPP used the nascent technology to create campaigns, including a Nike advert where Serena Williams played tennis against her past self. However, chief executive Mark Read has insisted that robots will never replace humans who come up with creative ideas.
Microsoft's $10bn backing for the pioneering OpenAI company has triggered an AI chatbot arms race among the world's technology companies. Google's Bard search chatbot works similarly to both ChatGPT and Microsoft's Bing Search implementation of the GPT-4 large language model (LLM) software, which itself underpins ChatGPT. Amazon Web Services launched new AI-powered features for its cloud computing product line dubbed "Bedrock" earlier this week.
