5 min read • January 5, 2023
There is no better place for innovative ideas than the stock market. You can even go as far as saying that the stock market is the perfect place for innovation because it's the best way of gaining an edge. Today, one of the most talked about steps forward in the world of technology is the OpenAI-developed ChatGPT, which is set to change how we as humans find information.
Though a lot of people are in the know when it comes to this leap forward in the tech field, many aren't, and even fewer know how to apply it to the stock market. If you fall into this category, then you have come to the right place, because we will explain just that.
- What about ChatGPT?
- ChatGPT restrictions
- Other uses of ChatGPT
- How does it apply to the stock market?
- ChatGPT in the stock market
- Investing in ChatGPT
- Final thoughts
Before getting into how it can be used as a tool in stock market activities, you have to know what ChatGPT is. In short, it is a large language model AI that is capable of giving astonishingly human responses when asked questions. It is the latest in the Generative Pre-trained Transformer or GPT model series, which does the above at different levels during their evolution. ChatGPT takes after one of the latest in the series which is GPT-3.
What makes ChatGPT distinct from others is the fact that it is backed by Reinforcement Learning with Human Feedback or RLHF. This pretty much allows it to bring forward responses that are going to satisfy whoever asks for them.
How this piece of tech has been trained is quite rigorous, something done on purpose by its company of origin, Open AI. This training has enhanced ChatGPT's prediction abilities so much that the large language model it's based on cannot only predict entire entries but correct them based on the knowledge obtained.
Though the technology has captured the world's imagination, it is pretty new and has quite a few restrictions. How these will be addressed in the future is anyone's guess, but as someone trying to use them in your stock market endeavors, you should expect them.
Some of these include the following:
- It cannot answer all questions due to the restrictions put on negative-leaning entries
- It cannot answer all questions correctly due to it being inspired by humans
- Not every entry can be predicted accurately, which is why expert entries are required
Though you are about to see just how this technology can be applied to trading, it does have other uses. Most of these have something to do with writing in general. ChatGPT's ability to learn from you and predict large amounts of information you are about to enter makes it particularly suitable for creative writing of all sorts. If the material in question is relatively short, this technology can come close to getting it.
Now we can get into the meat of the subject at hand and find out whether or not ChatGPT has a place in the stock market. To properly answer that, there are two main places we have to look at this from and those are:
- using ChatGPT in the stock exchange
- investing in ChatGPT
In theory, artificial intelligence at a high level will be able to make decisions to your specifications a lot better than today's bots can. This will make the task of actually predicting how the market will play out as well as acting on it easier.
This is also something that is still pretty far away because ChatGPT is not at the level that it needs to be to tackle some of the serious parts of trading. Most AI isn't at that level or anywhere near it. The most that can be done at the moment is to ask relatively basic questions regarding the subject in question.
Many experts have done this and they have found that for the most part, the answers given are satisfactory. However, the deeper you go into a subject, the more generic the answers become.
This continues until the moment you realize that a lot of the responses are wrong. It is for this reason that a significant amount of work has to be put into ChatGPT before it can get even a sniff of partaking in major stock market decisions.
The knowledge that ChatGPT isn't yet a supercomputer that can handle all your affairs may be a bit of a downer for you. However, you may be thinking that a door that leads to you investing in this exciting new technology has opened.
Unfortunately, that isn't the case because OpenAI hasn't gone public yet. As such no one can invest in it right now. That said, you should probably keep an eye out for the moment anything might happen.
The world is looking closely at the originators of ChatGPT to see their next move. The amount of hype that currently surrounds it means that if something does happen soon, a rush to the finish line may occur.
Now that you know what to expect, what are your options concerning ChatGPT? Well, it boils down to the fact that as it stands very little can be done using this technology, especially on the stock market. Even the most basic of searches on every subject has very few guarantees as far as answers are concerned.
What this all means is that all hope is put into the technology's potential to do great things going forward. When you look at things from that angle, the picture doesn't look as gloomy, because ChatGPT is not only an exciting investment but a great tool to use in the stock market if it gets advanced enough.
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