It's 2032 and ChatGPT 82.0 says the sun rises in the West
Brian Lantier
Sell-Side Analyst, tech/software VC/PE firm & a hedge fund. Specializing in big picture ideas & trends.
I'm not breaking any news that algorithms one Wall St have been racing one another to analyze news faster and faster to gain edge in the markets. However, one ominous trend that I and others have been noting is the rise of machine written news or analysis which is removing the human component.
I've made this analogy before but if AI is reading and processing bad information it will return a bad result. Point the algorithms to enough spots where it reads that "the sun always rises in the west" and it may return this as fact. Increasingly, I am seeing crude attempts at AI-generated "stock analysis" and "reports" that are flooding certain sites. Follow this forward through a few iterations and we will have
* AI writing flawed analysis
* Read by trading algorithms which all generally follow the same set of trading rules
* Leading to higher probabilities of data, news and analysis being misinterpreted by the majority of the market.
Ironically, this feels like it could create opportunities for a human to be at the controls much like a driver in early robotaxi deployments but given the desire of Wall Street to automate every step of the investing process I won't hold my breath waiting for them to recognize the need for a human's input.
Cofounder & CEO at Blackbird
1 年So what you're saying is, some AIs will be reading biased information created by other AIs...and the question is whether, as the volume of biased info increases, the filters of the reporting AIs will improve, or if they'll be swamped...but what makes you think their filters won't improve? And if the markets start to respond to biased information, this will create arbitrage opportunities...which sounds like a self-correcting problem. No?