According to two recent investigations, the AI chatbot can successfully analyze how the market will develop from news headlines.
Artificial intelligence can anticipate financial movements based on news headlines. That is the conclusion reached by two different studies, one carried out by experts from the University of Florida and the other by members of the FED. Both determined that the chatbot can successfully determine the BTC price variation.
In the first of these, two scientists from the University of Florida, in the United States, discovered that the AI chatbot developed by OpenAI can predict how the financial market will evolve through the interpretation of various news related to this financial asset.
The investigation was led by finance professor Alejandro López-Lira and his partner Yuehua Tang, and was picked up by CNBC and Bloomberg. Not only the potential of ChatGPT but also large language models (LLM) were analyzed.
The study developed like this: the system was presented with more than 50,000 subsequent headlines at the end of 2021. Precisely a period of time that the chatbot does not have in its storage. He was then asked to “pretend to be a financial expert” and there he launched his predictions about the price of this asset.
When the responses were analyzed, they found a statistical link to subsequent stock movements, a sign that the technology was able to correctly analyze the implications of the news.
In their investigation, the two experts introduced the owner of a company that was resolving a dispute and paying a fine to the chat. The response from the GPT chat was that this was actually good news, an answer that was correct in the long run and that even human analysts had not interpreted as such.
On the other hand, the study carried out by the Fed managed to determine the aggressive or moderate tone of the statements on monetary policy of that same entity. The investigation was carried out by officials Anne Lundgaard Hansen and Sophia Kazinnik of the Richmond Fed.
Also, they discovered that ChatGPT outperformed a widely used Google model called BERT and also to classifications based on dictionaries. According to the daily Bitcoin, the system was even able to explain its classifications of the Fed’s policy statements in a way that was similar to that of the central bank’s own analyst, who also interpreted the language to act as a human reference point for the study. .
Source: Ambito
I am a 24-year-old writer and journalist who has been working in the news industry for the past two years. I write primarily about market news, so if you’re looking for insights into what’s going on in the stock market or economic indicators, you’ve come to the right place. I also dabble in writing articles on lifestyle trends and pop culture news.
