Is it okay to invest in ChatGPT? Bridgewater CIO: Equivalent to "Millions of Assistants" Working Simultaneously

**Source: **Financial Association

Edited by Huang Junzhi

Image source: Generated by Unbounded AI tool

Greg Jensen, co-chief investment officer (CIO) of Bridgewater, the world’s largest hedge fund, seems impressed by ChatGPT’s investment acumen.

He said in the latest interview that ChatGPT was able to pass his company’s investment assistant test, and the power of the artificial intelligence (AI) chatbot was like having “millions” of junior employees working at the same time.

In fact, long before ChatGPT became popular, Jensen saw artificial intelligence as a major interest of Bridgewater. He also previously said that the hedge fund is currently experimenting with applying machine learning artificial intelligence to its trading strategies.

In his latest remarks, Jensen said that bots such as ChatGPT performed well in Bridgewater’s internal testing of investment partners. ChatGPT 3.5 is the most famous version of the artificial intelligence large language model. Its score is equivalent to the level of the company’s first-year assistant, and it is in the 80th percentile of all candidates.

While the chatbot isn’t perfect, its strong performance reflects a lot of intelligence, and ChatGPT’s capabilities are the equivalent of having an investment team, he said.

“Because all of a sudden, technically, you have millions of people at once. If you have the ability to control their hallucinations and errors through a rigorous statistical background, you can do a lot of things very quickly. That’s what we done in the lab and proved that the process works," he said.

Jensen added that the main issue surrounding ChatGPT was its propensity to provide inaccurate information, calling some of the bot’s answers outright “illusions.”

Jensen also said AI bots are unlikely to fully replace human workers anytime soon, although Bridgewater is working on a fund run primarily with “machine learning technology.” The company is trying to combine ChatGPT with other statistical and artificial intelligence models to improve its predictive capabilities, he said.

“For the foreseeable future, you still need someone by your side to do those things,” he said. “It’s more about being a flexible generalist who can leverage whatever tools are necessary to get there.”

Wall Street has been eyeing ChatGPT for its role as a potential investment advisor, though most experts agree that more work needs to be done on the language model before it can provide truly solid investment advice.

The chief investment officer of Morningstar Investment Management previously said that currently, robots can only generate “first-order” responses and cannot apply knowledge to specific situations.