Can ChatGPT Predict Stock Market Price Movements?
Karamveer Singh
Journal of Digital Information Management, Vol. 22, No. 3, 2024.
DOI:  https://10.6025/jdim/2024/22/3/91-98
Link: https://www.dline.info/fpaper/jdim/v22i3/jdimv22i3_2.pdf
Abstract:
The combination of text analytics and machine learning technologies in various applications has emerged recently. Generative content creation platforms use machine learning, which is not only restricted to text but also considers other types of data, i.e., graphs, images, and knowledge bases. The Generative platforms such as ChatGPT and other tools focus on multi-modal knowledge extraction, a challenging area in Machine Learning. Advanced generative models generate large amounts of consolidated information with different characteristics to address data accessibility issues. ChatGPT and other generative mechanisms are extensively applied in various domains, the financial market being significant. Using state-of-the-art linguistic models, we analyze the potential of ChatGPT to predict stock price growth using Indian news headlines, offering a promising outlook for the financial market. The main challenge is determining whether a model originally developed for commonly understood language can predict the success of banks in a complex and dynamic market. The study, a pioneering effort, provides valuable insights into the benefits and implications of ChatGPT in the economy, shedding light on its market research, risk assessment and sentiment analysis capabilities. It is one of the first attempts to addition to its use in text explore the use of ChatGPT in  the Indian economy. In analytics, ChatGPT holds promise as a valuable asset for financial professionals, providing flexibility and sensitivity analytics capabilities in navigating the challenges of a volatile industry. As the financial sector evolves, continued research and development to leverage the full potential of language models such as ChatGPT will help enhance market research and decision-making processes. Integrating AI-powered solutions in finance has exciting possibilities for real-time insights and adaptive analysis.