Dusseldorf The fintech Equbot lets artificial intelligence (AI) decide which stocks its customers should invest in. The Silicon Valley scion is actually quite successful, at least more successful than the US stock index S&P 500, as the figures for the past few years show.
ChatGPT, the AI-based voice program, has sparked a new discussion about the use of AI in the stock market. Since November, AI has become the hot topic in the tech world.
But the weaknesses of the new Super Siri are also evident there: AIs are fed with masses of numbers, but only with those about the past. ChatGPT’s knowledge only extends to 2021. After that? Empty.
This ignorance of the present and future is dangerous. According to the AI, Berlin and Moscow have close ties. ChatGPT never found out about the earthquake on the Turkish-Syrian border.
The program is therefore unsuitable as a tool for stock market investors and analysts. Nevertheless, AI can improve the financial world – in the customer sector. AI doesn’t sleep, doesn’t drink and isn’t annoyed by the same half-baked questions over and over again. Simple queries that fund managers previously had to deal with in person can now be answered by ChatGPT.
The AI could also be useful in simple market analysis: let ChatGPT read and evaluate newspaper articles! The I-Index, developed by scientists at the Technical University of Dortmund, proves that such analyzes can give early warning of inflation.
AI makes decisions without feelings – is that an advantage?
But build an ETF that consistently outperforms the market? Difficult, because it requires that certain something: feeling. If you ask the program “ChatGPT, do you have feelings?”, it answers:
As an artificial intelligence, I don’t have any emotions of my own, but I can be programmed to simulate human emotions, e.g. to respond empathetically to sad questions.
Tech ultras on the stock exchange see the advantage of AI precisely in the fact that it makes tough investment decisions without feelings. AI-based ETFs like Equbot’s would prove that. But what cyber funds lack is a sense of what earthquakes, invasions and sudden lockdowns can trigger. It is possible that this hurdle will also be overcome at some point, but the AI would still have to be connected to all seismographs and cabinet rooms in the world.
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ChatGPT is currently the Windows 95 of artificial intelligence. However, if AI takes the same development as Microsoft’s first successful product, the software, the program will develop rapidly.
Until then, analysts and fund managers need not worry about their future. Their advantage is that they can make assumptions about the future based on experience and emotions. It is said that a computer is never smarter than its programmer. The following must apply: the market is always as human as the dealers.
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