Using the investment style of Warren Buffett, an engineer is harnessing one of the largest A.I. tools to analyze financial documents from Elon Musk’s company.
A.I. technology’s advancement in 2023 is evident in its ability to fulfill tasks that once seemed like something out of the future. It has become a reality today, demonstrating how far we have come.
Microsoft Corp MSFT boosted its investment in OpenAI – the parent company of ChatGPT – by an additional $10 billion as it seeks to incorporate the new technology into its Bing search engine. The launch of ChatGPT has been met with huge success since 2022, making this further investment worthwhile.
Many businesses and Microsoft are exploring ways to utilize ChatGPT to develop new strategies and enhance efficiency.
Recently, individuals have been looking into using ChatGPT’s potential applications, with one engineer contemplating its ability to look through corporate documents using AI.
Oshin, an A.I. engineer from the U.K., having codenamed the project ChatGPT “Warren Buffett,” shared in a video how it was used to analyze financial documents.
The project, dubbed after the legendary investor Warren Buffett, is designed to scan financial documents akin to his style. Its goal is to teach others how to evaluate documents in the same manner as him.
“A trend among companies is to incorporate the concept of retrieval in their AI systems,”
Retrieval has become necessary for businesses, enabling them to “chat with data.” Recent advancements in artificial intelligence have led to a growing need for applying A.I. technology to documents and other data. Oshin says this is an important development that can provide tremendous value.
Oshin went on to say:
“There have been many complaints about how long it takes to read annual reports. For example, investors in Tesla may want to make sense of current risk factors or how management is performing, but the annual reports can be hundreds of pages long.”
I have constructed a GPT-4 ‘Warren Buffett’ financial analyst to converse with and examine many PDF documents (around 1,000 pages) from @elonmusk’s Tesla 10-k annual reports for 2020-2022.
The analyst aims to demonstrate a “time series approach,” which analyzes cash flow performance by tracking trends over several years.
Oshin went on to say:
“You can kind of think of it as retrieving relevant sections of your document, as opposed to having to read the entire document, but it’s doing it based on natural language.”
Artificial intelligence can be utilized in multiple ways, which is something Oshin’s use case demonstrates. The importance of this cannot be overstated – such interactions are not simply one-directional but offer a greater range of capabilities.
The engineer’s Warren Buffett program, utilizing ChatGPT and other A.I. tools, highlights how such technologies can be employed to team up with humans to save time and better understand matters.
Oshin continues to say:
“Many people believe that AI is expensive, but in reality, it can be cost-effective,”
Goldman Sachs has predicted that the potential of artificial intelligence in the U.S. labor market could add up to 1% of GDP by 2030. They believe many jobs will involve task automation, which could create a huge investment opportunity.
The investment bank predicts that around 25% of work in major economies could be managed with artificial intelligence tools like ChatGPT, a powerful artificial intelligence technology.
Recently, Benzinga has reported how the entertainment industry is considering the influence of ChatGPT and A.I. on contract agreements. Goldman Sachs, in turn, warned that these developments might bring about “significant disruption” across many sectors.
ChatGPT’s advanced language processing capabilities, Warren Buffett’s investment expertise, and Elon Musk’s innovative thinking have resulted in a game-changing tool that will undoubtedly significantly impact the world of finance.
As the tool continues to evolve and improve, it will be exciting to see how it transforms how we approach financial analysis and decision-making. With this groundbreaking technology, the possibilities are endless, and the future of finance looks brighter than ever.