After more than 20 months since the grand introduction of ChatGPT by OpenAI, hedge fund managers such as Two Sigma Investments and Man Group are in a competitive rush to harness the disruptive capabilities of this technology. They are swiftly incorporating chatbots into their daily research and investment activities. Leading banks are also embracing these tools, with JPMorgan Chase & Co. rolling out its customized ChatGPT to staff in asset and wealth management recently, while Goldman Sachs Group Inc. is in the process of developing its own platform.
For these early adopters, who have a history of leveraging new technologies to gain a competitive edge in investing, chatbots are now able to handle mundane tasks akin to eager interns. This includes tasks like sifting through regulatory documents, summarizing research findings, and even writing basic code. However, the dream of a fully equipped chatbot analyst capable of generating sophisticated investment insights, detailed research, and reliable predictions still seems distant. This gap persists as concerns loom on Wall Street about whether this new technology can substantiate the current rapid surge in stock values.
Despite these uncertainties, advocates of quick financial gains remain resolute in their belief that their investments will yield substantial returns now that there is a better understanding of the practical limitations of chatbots in their original state. Goldman Sachs projects that the expansion of AI infrastructure across various sectors will exceed $1 trillion in expenses over the coming years. Balyasny has assembled a team of 12 individuals dedicated to AI, while Man is set to have six team members focused specifically on general AI. Services from fully trained systems like ChatGPT come at a cost for every additional use.
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