In 2023, the AI revolution sparked tremendous investment and excitement among the public. ChatGPT, a consumer product, utilizes Large Language Models (LLMs) to excel at predicting sequences of tokens to generate human-like prose from user prompts. However, applying these models to financial trading, specifically predicting prices and trades, has proven to be a challenging endeavor due to the complexities of the market and the volume of available data. Despite this, there is optimism that AI advancements can enhance fundamental analysis in finance. The unexpected success of generative AI models has pushed the boundaries of what is possible and could lead to even more powerful models in the future.
https://thegradient.pub/financial-market-applications-of-llms/