I will explain what ChatGPT is beyond the headlines, and its capabilities and limitations. I will then share a use case in wealth management and explore whether it will replace human financial advisors.
When I studied artificial intelligence (AI) in 1995 as a graduate student at Rensselaer Polytechnic Institute (RPI), my areas of interest included pattern recognition (i.e., character and voice recognition), fuzzy logic, and neural networks.
Q4 2022 hedge fund letters, conferences and more
It was the winter of AI, and not many people talked about it.
Professor George Nagy, who taught pattern recognition, introduced himself as deaf and blind to the class. Equipped with thick glasses, hearing aids, a booming voice and a warm heart, Nagy was a staple on campus, revered by all students and faculty. He is long retired, and I visit him every year. It was during one of these visits that he told me that he had read my essay about AI and recommended admission.
Today, character and voice recognition have become commonplace. Machine and deep learning have become everyday vocabulary as well. Neural networks are an important part of machine learning, and deep learning refers to multi-layer neural network, deeper than a single-layer neural network, hence the term “deep learning.”
I haven’t used AI in my work, but I know enough to know that most so-called AI applications are just traditional algorithms, not real AI. Because of the myriad of fake AI, I didn’t pay attention to ChatGPT when it was launched in November 2022. When the noise was too big to ignore, I decided to check it out and was immediately hooked.
This is some serious artificial intelligence.
What is ChatGPT?
ChatGPT (GPT stands for generative pre-trained transformer) is an AI language model that is very good at answering questions and carrying conversations. Unlike a Google search, which gives pages of links that you have to wade through and synthesize, ChatGPT synthesizes the results for you. Compared to Wikipedia, ChatGPT is more concise and digestible.
Let’s see how ChatGPT explains itself.
Read the full article here by Helen Yang, CFA, Advisor Perspectives.
