The main advantage of using AI is its ability to process and analyze very large amounts of data quickly and accurately. While AI has long been used in finance but never at this data scale or speed. The availability of this to the public is a new thing, because of Microsoft partnership with OpenAI, they built the infrastrucutre and are providing the API to use the power at extremely affordable prices, just like using Amazon Web Services, or building a site using WIX or Squarespace, very soon you will be able to use the power of AI coupled with the new inftrasturcture by Microsoft that can handle and analyze huge data, at a small monthly subscription.
Traders will be able to build robust strategies using insights about patterns and timeframes across hundred of markets with a click of a button. Investors will have high probability predictions about the markets, which can help them make more informed decisions.
This is only the tip of the iceberg of what can be done. Think of all the current Robo Advisors that harvest 3-6% annually, those models will be left in the dust.
This video I posted about OpenAI ChatGPT will give you a brief idea about how it started and the investors behind it:
I expect many startups will spring within the next few years, that will most likely kill a lot of the current established players. If history is any guidance, those companies will stick to their current infrastructure and will be left on the sidelines slowly but surly until they close their doors.
This is based on what we can do now. Just check out this video where I talk AI into building me a trend following strategy in Tradestation EasyLanguage structure
I also used Chat GPT to find specialized and niche ETFs to invest in for the next 5-10 years and the results are shown in this video
Using current OpenAI ChatGPT engine will not yield outrageous results in terms of models, because of the imposed limitations on it's capabilities, but once they open the gates, and let's say with the next iterations, I think it will be one of the best tools available for us.
For us traders and investors, this is very exciting, as we will have research and trading tools for fraction of the price at 100x the power of the current offerings. While OpenAI is in the lead and got the most attention, there are many other companies in this new race, here is a list that I found useful to keep an eye on: