Hedge Funds Are Deploying ChatGPT to Handle All the Grunt Work
The latest artificial intelligence hype is powering a massive surge in the stock market on bets that a new era of innovation is nigh.
Yet for money managers who weaponize computing advances for an investing edge, the era of ChatGPT holds a less lofty promise for now: Automating the grunt work.
So-called generative AI is already helping to speed up mundane tasks known to crush the spirit of junior Wall Street employees, hedge funds say — from reviewing reams of market research to writing basic code and summarizing fund performance.
Chatbots could eventually help generate material efficiency gains and provide more rewarding work for their human overlords, possibly at the cost of jobs. But it’s early days yet.
At systematic hedge fund Campbell & Co., its quants have spent months experimenting with using the tech behind ChatGPT to summarize internal research and write boilerplate code. Yet generative AI tools are proving no game-changer for their day-to-day investing methods, just yet.
“They are very strong for code completion, editing, finding errors, and fixing bugs,” said Kevin Cole, chief executive officer at Campbell. “Our model would keep humans in the loop — an assistant to the human helping to make their job more efficient.”