AI surpasses humans in financial analysis

Happy FRY-nancial FRY-day! Let’s check out the hottest topics and trends in AI and finance. 🔥

*None of what we offer is investment advice. Our aim is to report to you the latest happenings and teach you how to use the latest AI finance tools.*

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(The mystery link can lead to ANYTHING AI related: tools, memes, articles, videos, and more…)

🔨 AI TOOLS OF THE DAY

📈 Stock AI: Get AI-powered stock forecasts. → check it out

🧾 Paper Money: Financial reports made easy. → check it out

🛍️ Penny: Shop smarter and save more. → check it out

STUDY SHOWS AI SURPASSES HUMANS IN FINANCIAL ANALYSIS 🦾

Q: Why was the stock trader electrocuted?

A: He shorted his Tesla. ⚡️

What’s the scoop? A new study from the University of Chicago revealed that large language models (LLMs) like GPT-4 can effectively perform financial statement analysis and even surpass human analysts in predicting future earnings.

How was this done? Researchers provided GPT-4 with standard, anonymized financial statements and a prompt to emulate the analytical processes of professional financial analysts. Remarkably, GPT-4’s insights not only outperformed those of human analysts but also matched or slightly exceeded the performance of other state-of-the-art models specifically trained for earnings prediction. This success was achieved without access to qualitative information, highlighting the model’s capability in analyzing trends, ratios, and economic reasoning.

What does this mean? The study concludes that GPT-4’s predictive prowess stems from its sophisticated analysis techniques, rather than from any specific training data. This underscores AI’s power for financial analysis, offering insight to a future where AI predicts the market better than any human ever could.

THIS WEEK’S DIAMOND IN THE ROUGH 💎

AI continues to supercharge the stock market, and its magic effect is impacting more than just the major players. 📊

What’s up? Qualcomm (QCOM), a sneaky player in the semiconductor industry, has taken massive strides in AI over the past year, making it one of our diamonds in the rough.

How is AI impacting QCOM? QCOM, which has recently reached its all-time high, is up almost 50% in the past year with no signs of slowing down. Despite massive growth, its first quarter results for 2024 once again exceeded expectations. Much of this is due to massive AI integration and the need for power from players across the space. In an official statement, QCOM alluded to “upcoming launches with Snapdragon X platforms” which will enable “leading on-device AI capabilities across multiple product categories.” Given that on-device AI is hotter than a deep fryer right now, underlined by the release of AI-powered phones and PCs by major players like Microsoft and Google, this play by QCOM seems to be incredibly valuable.

HOW ARE THE MAGNIFICENT 7 DOING? 📈

CHAT WITH YOUR MONEY 🤑

Money talks … No, literally. 🗣️

What’s new? Candle GPT leverages the power of OpenAI’s ChatGPT to allow users to chat with their own money, gaining personalized insights about their finances in natural language.

How to use this tool:

1. Download the free Candle GPT app on IOS or Android.

2. Securely link your financial account to Candle: You can link almost any US-based bank account, Coinbase, Robinhood, and even Venmo!

3. Tap the “GPT” button on the Candle app and create a password.

4. Once you are automatically deep linked to ChatGPT, give permission for ChatGPT to access Candle: If you give permission to ChatGPT to access your account(s), it can only do so via the Candle app and will not have direct access to your account.

5. Chat with Candle’s GPT about your money, by both text and voice!

What can I chat about? Using Candle, ChatGPT can access your balances, investments, and account history, answering any question you have about your finances. It is also able to place investment orders and perform account transfers on your behalf (this requires a simple confirmation step). You can ask ChatGPT, for instance, “How much money did I spend on food last month?” or “What is my current balance?” Or, you can command ChatGPT to “Invest $50 in Nvidia.”

What about privacy? Your credentials stay on your device and are never shared with Candle, OpenAI, or anybody else. Also, you can revoke ChatGPT’s access to your Candle account and/or linked financial accounts at any time.

FRY-AI FANATIC OF THE WEEK 🍟

Congrats to our subscriber, William! 🎉

William gave us a Fresh and Crispy review and wrote, “Nice to have short bites of AI info.”

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YESTERDAY’S POLL RESULTS 📊

Featured comments:

“AI is telling pregnant women to smoke, suicidal people to jump off buildings, and all people to eat rocks. I think I’m good.” (No way! 🚫)

“Maybe… If it showed the real sources of the data, showed how it reached the recommendation and did a proper disclaimer of risks and why it could possibly be wrong. Of course, wouldn’t it be great if all human doctors did this too?” (I’m not sure. 🤷‍♂️)

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