ChatGPT may be valuable for investors who want to predict stock prices.
Alejandro Lopez-Lira, a professor of finance at the University of Florida in the US, believes that large language models can predict the rise and fall of stock prices.
In a recent non-peer-reviewed paper, he said that after using ChatGPT to analyse whether news headlines were positive or negative for a stock, he found that ChatGPT was far better at predicting the next-day stock returns than traditional models.