A study by researchers at the University of Chicago used ChatGPT to analyze the conference-call transcripts of large companies, asking the AI to summarize the risks that companies faced. Risk obviously plays a big role in stock market returns, so financial firms have spent a lot of time and money using specialized, older forms of machine learning to try to identify the uncertainties associated with various corporations. ChatGPT, without any specialized stock market knowledge, tended to outperform these more specialized models, working as a “powerful predictor of future stock price volatility.”
