Interesting fact: GPT-4 by OpenAI surpasses humans in analyzing financial reports and making forecasts.
A recent study conducted by the Booth School of Business at the University of Chicago found that GPT-4, even without specific data, predicts income changes better than financial analysts. According to the findings, trading strategies based on GPT-4’s forecasts yielded more profitable results than those based on traditional stock market analysis.
Experts used chain-of-thought prompts, mimicking human thinking, to help GPT-4 identify trends in financial reporting and calculate various financial ratios. The LLM then analyzed this information to forecast future incomes.
This discovery suggests that GPT-4’s ability to recognize financial patterns and business concepts based on incomplete information could revolutionize the financial decision-making process. The study’s authors highlight the potential of this technology to enhance financial analysis.