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CTOnews.com, April 28 (Xinhua) A recent study shows that ChatGPT is a highly advanced AI robot with amazing ability and high accuracy in predicting stock movements. As a result, this has sparked speculation about the possibility that artificial intelligence models will replace human investment analysts in the next few years.

University of Florida professors conducted some studies and found that the performance of the chat robot far outperformed traditional emotion analysis techniques. "ChatGPT outperforms traditional emotion analysis methods."

The professors believe that integrating advanced language models such as ChatGPT into investment decisions may make forecasts more accurate and improve the performance of quantitative trading strategies. At present, this paper has been published on the SSRN public welfare academic platform (CTOnews.com with DOI link http://dx.doi.org/10.2139/ssrn.4412788).

To assess ChatGPT's predictive ability, professors provided more than 50,000 headlines about specific companies since October 2021. They then asked ChatGPT whether the headlines had a positive or negative impact on the company's share price, or whether they had no impact at all.

Using emotional analysis, OpenAI designed a unique scoring indicator for ChatGPT, called the ChatGPT score, which the robot can analyze to assess its ability to predict the company's stock market performance the next day.

The study found that there is a significant constructive relationship between the ChatGPT score and the stock performance of the selected companies the next day, the higher the score, the better the return, and the lower the score, the lower the return.

Image source Pexels researchers found that traditional models did not provide any additional predictive power compared to ChatGPT-based mood scores. These results show that ChatGPT has a deep understanding of stock market patterns, which also provides a potential opportunity for those investors.

In fact, in a recent interview with Fortune magazine, the researchers highlighted the potential changes that ChatGPT and other similar artificial intelligence models could bring to different financial subindustries, namely asset management, stock trading, investment and financial regulation. Although chatbots are not aware of the negative impact of senior executives selling stocks, researchers are optimistic about the future of artificial intelligence in the financial industry.

Of course, while ChatGPT and other high-level language models have strong prospects for predicting the stock market, there may still be many surprises, such as failing to provide the expected accuracy and help, and it can also pose serious risks.

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