The Blubber

ChatGPT is reportedly largely powered contractors making $15 an hour, per NBC News.

Meanwhile, the finance industry is witnessing the emergence of academic research that applies ChatGPT, an artificial intelligence (AI) chatbot, to finance-related tasks. Early results indicate that the technology lives up to its hype.

Two recent studies have demonstrated ChatGPT's capabilities in finance. The first study assessed ChatGPT's ability to interpret whether Federal Reserve statements were hawkish (suggesting tighter monetary policy) or dovish (suggesting looser monetary policy). The second study evaluated ChatGPT's capacity to determine the impact of news headlines on stock prices. In both cases, ChatGPT performed impressively, indicating a significant advancement in the use of technology to convert textual data, such as news articles, tweets, and speeches, into actionable trading signals.

While quantitative analysts (quants) on Wall Street have long employed language models, including natural language processing (NLP), to inform their strategies, ChatGPT's performance suggests that the technology developed by OpenAI has reached a new level of sophistication in understanding context and nuance.

Slavi Marinov, head of machine learning at Man AHL, which has used NLP to analyze texts like earnings transcripts and Reddit posts, remarked, "It's one of the rare cases where the hype is real."

Read more: https://unusualwhales.com/news/chatgpt-can-now-predict-stock-moves-based-on-news-headlines