Sunday 16 April 2023 – 02:20
Artificial intelligence (AI) models such as ChatGPT could be useful in predicting stock prices on the stock market, a US study reveals.
According to CNBC, the initiator of this study, Alejandro Lopez-Lira, used Open IA’s ChatGPT chatbot to test whether prices are good or bad for a stock, and he found that the chatbot was able to predict the direction of the next day’s returns.
ChatGPT features the ability to understand financial news headlines and affect stock prices, high-paying jobs in the financial sector would be at risk. Goldman Sachs had said that about 35% of financial jobs were at risk of being automated thanks to AI, the same source points out.
The chatbot understands information intended for humans and ensures that if the market doesn’t respond perfectly, there will be predictability to come back, said Lopez-Lira, whose study also reveals how well these great language models can fulfill tasks. financial.
They looked at stock returns over the next trading day. According to Lopez-Lira, the model performed well in almost every case when informed by a news headline.