Can an investor use ChatGPT?

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In the wake of the hype around the new versions of ChatGPT, discussions immediately began about whether AI will replace analysts. They have been using neural networks for a long time - for example , to analyze transcripts of management communication with analysts or sentiments on Reddit, where private investors dispersed "meme stocks". The first academic studies already show that ChatGPT can work with releases of central banks and corporate news more accurately than other linguistic systems. We tell how this can help a private investor in practice.

How AI can be used

late last year As soon as ChatGPT-3 came out , there was speculation about how it would change the world of finance. So far, with varying degrees of probability, we can assume that ChatGPT:

• most likely to fail the CFA exam;
• likely to replace junior sellside analysts: at least ChatGPT can already write simple notes on the results of quarterly reports. this The media have been doing for a long time. Advanced analytics will remain for people, according to the CFA Institute;
• will not choose stocks for the investor - ChatGPT is smart enough to at least not advise specific stocks. However, experts believe that he is not able to choose stocks well: AI is hardly able to track trends that may not be displayed in past data, company reports and news;
• equalize data access with hedge funds for private investors, say AI experts : ChatGPT uses a much larger dataset than quantum funds. But this will definitely not guarantee success in the market: any model is built according to an algorithm that is determined by a person. So Wall Street hacker Jim Simmons' Renaissance Technologies employs hundreds of math PhDs.

In this text, we focus on two practical ways of working with ChatGPT that a private investor can use right now.