ChatGPT is certainly cornering lots of space in the media, and bringing the public’s attention to a tool that could revolutionise most areas of life and of the world of work. Someone who understands its potential far better than most of us is South African-born, Heloise Greeff, a mechatronics engineer who went on to pursue an MBA and PhD in machine learning at the University of Oxford as a Rhodes Scholar. Today, among other pursuits, she uses Artificial Intelligence (AI) and Machine Learning (ML) to guide her as the only Female Elite Pro Popular Investor on Etoro, the world’s leading social trading platform.
The term ‘artificial intelligence’ was first coined in the 1950s. Despite great excitement, it failed to deliver due to a lack of large data to train on. The reduced cost of collecting and storing big data sets in the early 1990s allowed a second wave of major advances in machine learning. Greeff explains that “We are currently experiencing the next generation of AI with the emergence of generative AI, which is able to create novel content rather than simply analysing existing data.”
As a language model, ChatGPT was developed within this framework. According to Greeff, “Through an interactive chatbot like ChatGPT, the interface with AI is more welcoming for non-specialists. In terms of investing, it allows individual investors to ask their own questions and gain their own insights instead of relying on existing outputs.
“It’s really all about democratising access,” Greeff explains. “Many people have found the idea of investing quite intimidating because the field has traditionally been dominated by specialists and experts, and it hasn’t been a particularly welcoming place for ordinary people to get involved in as decision-makers. However, AI/ML provides tools for sophisticated analysis of financial patterns that may not otherwise be available to people (or professional investors either, for that matter). This can help to level the playing fields and make investing more accessible to a wider range of people.”
Greeff explains how this all works in practice: “I use ML as a decision support tool to gain additional inputs. To do this, I apply various ML approaches in various aspects of my investment strategy. For example, natural language processing and deep learning help to analyse vast amounts of company reports, news, and social media streams to identify key sectors or companies that I should focus on. I also have bespoke ML algorithms that assist with predictive modelling to make informed decisions about entry and exit points. In essence, ML allows me to cover the depth and breadth of analysis that would previously only be possible by a large and diverse team.”
As for opportunities to invest in AI, Greeff is bullish. The AI market is expected to grow from $21.5 billion in 2018 to $190.6 billion by 2025, which is an annual growth rate of 38.1%. “This potential for high returns could provide a lucrative opportunity for investors,” she says. Given the wide range of applications, AI is expected to penetrate every sector. This means that investing in AI/ML companies can provide diversification within a portfolio and reduce overall risk.
“But “ she cautions, “there is obviously quite a bit of risk in this sort of investment because one is dealing with novel or untested technology. In addition, regulation could affect the volatility of such investments, especially since it will probably only be introduced at a later stage, after investors have already made their decision to invest. Furthermore, many companies that claim to be working on AI may not have a clear path to profitability. In my experience, many products or services that claim to be using ‘AI’ may not be doing so. Investors are left with the challenges of making sure that they bet on the right horse.”
It’s likely that there will be some excitement among many people to adopt these tech tools with a view to benefiting at personal level. While there may be some risks involved, these tools certainly do bring the promise of major changes to our world.
