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ChatGPT and generative AI: the new revolution of investing in the stock market?

Date: March 28, 2023 Time: 08:50:31

Generative AI is a generic term for a form of machine learning (ML) called “deep learning.” This new technology uses machines trained on data sets to perform certain tasks and/or make predictions without human direction.

Most of the early ML models involved supervised learning, in which humans were needed to classify the data. That is changing. It is a new revolution that can generate investment opportunities.

Now, the machine has gone from being able to identify the dog in an image to creating an image of the dog. A technology called DALL-E creates boxes from descriptive words, and the Chat Generative Pre-trained Transformer (ChatGPT) can write cheap comments or even computer code from just a few prompts.

“While the functionality and user interfaces of ChatGPT and DALL-E are outstanding, the underlying technology is several years old, but improving rapidly,” Allianz Global Investors’ AI team says in a recent report. Thus, private and open source Advanced GPT Models have been created by Meta Platforms, Microsoft, Google and more since 2018.

ChatGPT is an example of a large language model (LLM), strong, perturbed software on huge text data sets to perform specific tasks, such as finishing a sentence or completing a line of code. LLMs have billions of variables (parameters) that can change as they learn, and as a result, as their accuracy rate increases, so do business use cases.

For example, an AI-based chatbot might be able to answer 90% of banking customer questions, freeing up employees to spend more time selling services or providing a better in-person experience for more valuable customers. from the bank.

Jacques-Aurélien Marcireau, co-head of equities at Edmond de Rothschild AM, believes there are clear parallels between ChatGPT today and the autonomous vehicles of 2015. autonomous vehicles and autopilots developed by Tesla and Google. But 7 years later, both car manufacturers and technology companies have come back to earth…

In the opinion of Frank Schwarz, a fund manager at MainFirst, the importance of Chat GPT and similar programs cannot be overestimated. “It is a qualitative leap, comparable to the introduction of the PC, the Internet and smartphones with the development of applications. Its use will not be limited to Bing, Microsoft’s search program, ”he highlights. It is expected that over time, it will be integrated into the cloud, Android smartphones and, of course, the iPhone. Right now, Microsoft leads Google in search.

However, Google, Apple, Amazon and also the Chinese platforms are under pressure and need to invest massively. “In our opinion, the semiconductor industry will benefit the most, especially NVIDIA, Taiwan Semi, ASML and the Japanese testing company Advantest,” says the MainFirst manager. “But cloud providers AWS and Microsoft are also getting a boost,” he adds.

What’s next in artificial intelligence?

Let’s imagine all possible scenarios for this type of technology. A company that needs any type of written material can do it faster and cheaper than any human being. When it comes to coding, generative AI technologies will free up programmers to focus on more important, value-added programming tasks, rather than repetitive, time-consuming basic coding.

AI can be used to generate products other than text, such as video and voice. “This tool could help or even replace time-consuming human tasks, such as logo design, scene illustration, and product design,” Allianz GI reports.

These models will form an integral part of the next generation of technologies related to augmented and visual reality in games, visual interactive entertainment and business simulations, as “digital twins”. Soon we will even be able to see how a famous actress gives her image to a production company that, in turn, uses a generative AI model to act in an advertisement.

The future of generative AI is likely to evolve rapidly. “We hope to see improvements in the quality and diversity of the content generated, new types of generative models and a broader application in various sectors, such as health, finance and transport”, the German manager specifies.

Furthermore, AI should be more accessible to a larger number of users thanks to user-friendly interfaces and tools. “The exact future of generative AI is difficult to predict, but we are optimistic that it will be a key piece of AI-driven transformation and innovation,” the Allianz GI report concludes.

Puck Henry
Puck Henry
Puck Henry is an editor for ePrimefeed covering all types of news.

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