How Soon Will Brokers Get Their Version of 'ChatGPT'?

lmost three years have passed since the launch of OpenAI’s text generator, and now the possibility of using the language model in different areas has sparked a lively public discussion on the potential and current uses of artificial technologies. Today, one month before the algorithm's third anniversary, we talked with Gracy Chen, the managing director of Bitget, the largest crypto copy trading platform and the first to launch copy trading for the cryptocurrency spot trading market. We discussed the prospects of using ChatGPT and artificial intelligence (AI) technologies for trading, as well as insights regarding possible application timelines and visions of development.

What is copy trading and how does it work today?

Copy trading is a tool for copying trades, helping users follow experienced traders in the process of buying and selling cryptocurrencies at a profit. It is ideally suited for those who can not follow the news regularly and might miss out on a favorable market. We provide users with the opportunity to choose a successful trader and replicate their trades.

How many traders use copy trading?

Since its launch, the copy trading feature on Bitget has attracted more than 80,000 elite traders to share their strategies and more than 380,000 followers to copy, and this number continues to grow.

That is, half of the modern crypto users use copy trading strategy, although this is a relatively new trend in the market. Is this hype related to new technologies like AI?

Indeed. Less than half that number of users were interested in copy trading merely a year ago. The popularity of AI and ChatGPT has become the catalyst that spurred demand for this type of trading practice. The novelty is fueling people’s interest towards experimenting with algorithms aimed at automating trading. In addition, the significance of the social aspect of the Internet is still growing. Just look at people's behavior — almost every mobile user has a favorite influencer on Instagram or TikTok. It's the same with copy trading, only with the exception that it entails increased responsibility and expert experience requirements.

But copy trading is actually far from these technologies, right?

The idea of using ChatGPT for trading is to leverage AI to make trading strategies to help beginners who can hardly make a strategy on their own. It is actually similar to the copy trading feature. Copy trading is the process of replicating the successful trades of professionals. But it may not be able to suggest personalized strategies. An AI, on the other hand, can take on such tasks to a certain extent.

When will exchanges be able to offer traders the use of AI?

Currently, Bitget users are using copy trading features to follow the strategies of their professional counterparts, while in the future, AI solutions like ChatGPT may also provide tangible crypto trading strategies for others to copy, and we truly welcome it. Still, it is too early to predict this, since technology first needs to be developed and tested.

Although the first experiments with AI will take place this year, the initiative is not actually coming from exchanges but rather from users themselves who look for opportunities to use AI-based tools, such as ChatGPT, to increase their income. Such approaches may entail a very high degree of risk — something developers can not accept in the process of creating a safe and reliable product that will not backfire with irreparable reputational and financial damages.

Can you tell me more about these risks?

The language model currently in use is based on information that is likely to be true for the past, but may be questionable today and even more likely so tomorrow. The ability to forecast based on the present is called intelligence, while what AI can provide today is called history. The available AI at its current stage of development is extremely limited in its ability to work with the future and predict events. Trading and investing are all about the future and forecasting.

The bigger problem is that some people think that ChatGPT knows more than they do, it is more adept and efficient. This may lead to outright blind faith in technology - a very dangerous turn of events that is unacceptable in trading. In this area, it is necessary to maintain a certain level of skepticism and try to make balanced and independent decisions based on a combination of information, experience and intuition.

Also, it's worth noting that if one day most people use strategies from ChatGPT to trade crypto, does the strategy still work? How will the market evolve with a large group of investors using the same strategy?

In theory, can ChatGPT replace a successful trader or a broker today?

That is a rather moot definition for the profession. Who is a successful trader? One whose trades are profitable 100% of the time? I think it's impossible. Trading in stocks and cryptocurrencies depends on many unpredictable and difficult-to-control factors, such as human error, global events, and even one mysterious factor—luck. Professional traders who earn millions of dollars sometimes face new situations that incur significant losses. The fact is that any trading model is based on accumulated experience, where the skill of palpating the present to predict a blurry image of the future is the key.

In my line of work, I regularly meet projects that are working on creating trading bots or are interested in using them. A good trading assistant based on ChatGPT is a possible development, but it will never be fully reliable as a replacement or consultant.

Today, many people and even whole countries, like Italy, are starting to ban the use of ChatGPT or advocate for its restriction. What are your thoughts?

Firstly, it's important to understand why we see the restriction or banning of AI language models like ChatGPT. One reason is concerns about privacy and data security, as the use of AI language models may involve the collection and processing of personal information. Another reason could be fears around the potential misuse of AI language models, such as the spread of misinformation or the creation of deep fakes.

As new technology occurs, it is reasonable for the government to be more cautious and protect residents. People also need to weigh the potential risks and benefits of using AI language models like ChatGPT and make informed decisions about their use. It's important to consider factors like ethical considerations, accountability, and transparency when developing and deploying AI systems.

On the other hand, AI language models like ChatGPT can also have many positive applications. Furthermore, the development of AI technology has the potential to lead to significant advancements in various fields, from healthcare to transportation.

In other words, the development of AI can not be stopped. What fuels your confidence in this issue?

Progress is an unstoppable phenomenon and once demand for innovation arises, there will be traction in its gradual perfection. Microsoft, Google, Amazon, Tesla, and Nvidia are working on creating their own products like ChatGPT and are developing AI. These public companies have strong competencies, and if they are betting on AI, then humanity might witness the next technological revolution in the coming years.

Source: https://www.nasdaq.com/articles/how-soon-will-brokers-get-their-version-of-chatgpt