“About the Series: As current students, most of us have explored ChatGPT in work or study, or out of curiosity, mostly to facilitate some dirty work to increase productivity. As a CSE Career Captain, ChatGPT really helps a lot with my industry research work, acting like an AI expert across various industries.
The financial service industry has been at the forefront of adopting cutting-edge technology to provide better service and meet compliance requirements. With the rise of AI, the financial industry is seeking to leverage generative language AIs, like ChatGPT, to improve productivity and enhance their service. Let’s look at the new dimension of financial services with AI-generative language strategies.”
– Ruolan Li, MA’24
Check out the third installation in a new CSE Connect Series about how ChatGPT is influencing the various industries of interest to Brandeis International Business School Students!
Innovate Finance: A Student Journey into AI’s Impact
ChatGPT in the Banking Industry
This article “Top 10 Use Cases for ChatGPT in The Banking Industry” from Forbes lists the most general uses of ChatGPT in Banking, which are customer service, fraud detection, loan origination, wealth management, compliance, financial planning, KYC (Know Your Customer) and AML (Anti-Money Laundering), customer onboarding, risk management, and virtual assistant for banking.
With ChatGPT’s natural language processing capabilities, it can process customers’ requests and demands efficiently.
ChatGPT helps improve investing strategies
The “Using ChatGPT to Improve Investing Strategies” post from Finance Magnates shows how ChatGPT is reshaping the trading experience. ChatGPT adds a new level of sophistication to investment strategies by processing large data sets, finding trends, and generating smart replies.
First, ChatGPT helps filter key information by processing news articles, press releases, and social media trends. Second, ChatGPT shows remarkable proficiency in deciphering central bank statements. Third, ChatGPT provides useful insights into probable future market movements by evaluating past data and identifying trends. Last, ChatGPT can assess risk variables linked with certain investments, providing a full assessment of potential drawbacks.
JPMorgan: the first mover developing a GPT-like product
An article from CNBC, “JPMorgan is developing a ChatGPT-like AI service that gives investment advice” introduces a product called IndexGPT that can analyze and select securities tailored to customer needs. The IndexGPT is an AI program to select financial securities, which brings up fears from financial advisors that the arrival of technology will displace their role in markets. Regarding the GPT and large language models, JPMorgan recognized the power and opportunity of these tools and committed to exploring all the ways they can deliver value for the firm.
GPT’s limited use in the Finance Industry
The article “GPT and other AI models can’t analyze an SEC filing, researchers find” from CNBC points out the limit of current GPT technologies. Even though head finance companies like Bloomberg and JPMorgan have been developing AI models for financial data in the past year, GPT’s entry into the industry hasn’t been smooth. Large language models frequently fail to answer questions derived from SEC filings.
Even the best-performing artificial intelligence model, OpenAI’s GPT-4-Turbo, when armed with the ability to read nearly an entire filing alongside the question, only got 79% of answers right. The application of GPT in financial services still has a long way to go.
Reflection
In the dynamic intersection of finance and artificial intelligence, we witness a compelling narrative unfold. The strides made by ChatGPT, exemplified in applications from customer service to investment strategies, underscore the industry’s enthusiasm for cutting-edge technology. While challenges persist, notably in deciphering intricate financial documents, the journey towards seamless integration continues.
As financial institutions pioneer novel solutions, led by innovators like JPMorgan, the evolving relationship between finance and AI promises not just advancements, but a captivating saga of transformation in the way we navigate the intricacies of the financial landscape. Stay tuned as the narrative unfolds, revealing new chapters in the fascinating story of AI’s impact on the world of finance.
Written by Ruolan Li, MA’24, and run through ChatGPT for grammar and spelling, this is the third installation in the CSE Connect Series about how ChatGPT is influencing the various industries of interest to Brandeis International Business School Students.
