ChatGPT Nails Stock Predictions, but Wall Street is Unimpressed
Recent studies show that ChatGPT has the potential to predict stock market returns more accurately than other basic models, such as GPT-1, GPT-2, and BERT. Bloomberg has released a new GPT-based language model called BloombergGPT, which is said to improve existing natural language processing tasks, including sentiment analysis, news classification, headline generation, question-answering, and other query-related tasks.
While businesses, transportation, science, law enforcement, and medicine industries have embraced AI, the finance industry has been slow to integrate it into their operations. Although computer programs have been used for tasks such as trading and risk management, investors haven’t made significant advancements in using AI to outperform the market.
The utilization of AI in investing has not produced remarkable outcomes, and while ChatGPT's language model could potentially enhance sales and research endeavors, there are apprehensions in the market given the risks it could pose if it doesn't provide the accuracy and assistance expected. The market at large seems to have chosen to stick with older methods until something truly groundbreaking comes around.
