The [i3] Luncheon on artificial intelligence and investment decision-making was held on 7 December 2023 in Sydney in partnership with UBS Asset Management.
Ever since the field of artificial intelligence (AI) emerged in the 1940s, investors have been trying to get computers to predict stock prices.
Until recently, these attempts failed to do so, at least consistently so.
But a recent paper by academics from the University of Florida, titled “Can ChatGPT Forecast Stock Price Movements? Return Predictability and Large Language Models”, claims that with the advent of ChatGPT 3.5, AI can now be applied to predict next-day stock price directions based on the news headlines of the day.
We heard from Assistant Professor of Finance Alejandro Lopez-Lira about his research into the application of ChatGPT in sentiment analysis and stock price prediction.