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AI-loving hedge fund CIO not keen on chatbot stock-picking

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Greg Jensen, Co-Chief Investment officer at the world’s biggest hedge fund Bridgewater Associates, has warned against the use of large language models (LLMs) like ChatGPT to trade equities, despite being an early investor in its creator OpenAI as well as AI startup Anthropic, according to Bloomberg.

Greg Jensen, Co-Chief Investment officer at the world’s biggest hedge fund Bridgewater Associates, has warned against the use of large language models (LLMs) like ChatGPT to trade equities, despite being an early investor in its creator OpenAI as well as AI startup Anthropic, according to Bloomberg.

Speaking in the latest edition of Bloomberg’s Odd Lots podcast, Jensen said that the tech would be “awful” at identifying major turning points in macroeconomic development, and that attempting to use LLMs to pick stocks is “a hopeless path”.

Jensen, and other senior execs at Bridgewater – the hedge fund founded by Ray Dalio in the 1970s – do see a role for AI in money management though, with the firm having employed machine learning for many years. And according to Jensen, Bridgewater is now exploring “combining large language models that are bad at precision with statistical models that are good at being precise about the past, but terrible about the future”.

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