GPT-4 and The Future of Finance

MoneyBestPal Team
A man using ChatGPT website version on a laptop.
Image: Freepik / frimufilms

The Generative Pre-trained Transformer (GPT) model, a deep learning system capable of producing natural language texts on a variety of subjects and activities, has released GPT-4 as its most recent iteration. 

GPT-4 differs from previous versions of GPT in several ways, such as:
  • Compared to 175 billion for GPT-3 and 1.5 billion for GPT-2, it has a substantially bigger model size with about 500 billion parameters.
  • With over 1.5 trillion words from a variety of sources, including books, news stories, social media posts, online pages, and more, it has a more varied and extensive training data set.
  • It has a more sophisticated self-attention system that enables it to recognize complicated relationships and long-range interdependence between words and phrases.
  • It can generate messages that are more cohesive, pertinent, and interesting thanks to a more refined and flexible output-generating process.

GPT-4 is a cutting-edge natural language generation system that can carry out a variety of activities, including answering questions, producing essays, summarizing texts, making stories, creating emails, and more. According to the input and choices of the user, it can also produce texts in a variety of languages, writing styles, and tones.

GPT-4 Capabilities and Achievements

GPT-4 is a remarkable achievement in the field of artificial intelligence. It is a sizable multimodal model that can receive both text and image inputs and generate text outputs that are accurate, coherent, and creative. Some of the capabilities and achievements of GPT-4 are:
  • A functioning website can be produced from a simple notebook sketch.
  • It's capable of creating video games in less than 60 seconds.
  • The entire chatbot codebase may be easily checked for errors and issues.
  • Riddles can be appropriately solved by it.
  • DoNotPay can initiate "one-click lawsuits" against robocalls when it is employed.
  • Because of its superior general knowledge and problem-solving skills, it can more accurately tackle complex problems.
  • It can generate, revise, and iterate with users while working with them on artistic and technical writing tasks including songwriting, screenwriting, or determining a user's writing style.
  • It is capable of passing a simulated bar exam with a score in the top 10% of test-takers; in contrast, GPT-3.5's score was in the bottom 10%.
  • It can perform at human levels on a variety of professional and academic tasks.

GPT-4 is the outcome of scaling deep learning with additional computation and data. It is the outcome of adding more human input and collaborating with specialists to enhance its alignment and safety. Compared to GPT-3.5, GPT-4 is 82% less likely to respond to requests for content that is not permitted and 40% more likely to provide factual responses. More reliable, inventive, and team-oriented than ever before, GPT-4.

How GPT-4 will improve Financial analysis and decision making

Powerful language models like GPT-4 can extract and combine data from a variety of sources, including business papers, market data, news stories, etc. Additionally, it can generate, modify, and collaborate with users on technical and artistic writing tasks including generating reports, summaries, or understanding user preferences. GPT-4 can help financial analysts and decision-makers in several ways:
  • Forecasting: Financial analysts can more efficiently examine complex financial charts and graphs using GPT-4's multimodal inputs to assist in forecasting. As a result of its improved performance, it can now produce scenarios that are based on historical data and current trends and are both more accurate and realistic. For instance, a financial analyst could ask GPT-4 to anticipate a company's revenue growth based on past performance and market conditions. GPT-4 would then produce a complete report with graphs and tables displaying the projected revenue for various time periods and confidence intervals.
  • Valuation: GPT-4's steerability allows financial analysts to direct the model's output in accordance with their requirements, which can aid in valuation. It may also obtain pertinent information from a variety of sources, including financial reports, analyst comments, market research, etc., using the vast knowledge base it has amassed. A financial analyst would, for instance, ask GPT-4 to assess a company using its discounted cash flow (DCF) model. In response, GPT-4 would produce a thorough valuation report that would include the DCF formula, assumptions, inputs, outputs, sensitivity analysis, etc.
  • Risk assessment: GPT-4 can aid financial analysts in risk assessment by exploiting its comprehension of the context and enhancing its writing skills. Additionally, it can more successfully analyze complex financial graphs and charts using the multimodal inputs it receives. For instance, a financial analyst could ask GPT-4 to evaluate the investment risk of a company based on its financial statements, industry outlook, competitive environment, etc. GPT-4 would then produce a thorough risk assessment report with the risk factors, mitigation strategies, recommendations, etc.

Using GPT-4 for financial analysis and decision-making could have several benefits, such as:
  • Speed: GPT-4 can handle and interpret data more quickly than humans, which conserves time and resources.
  • Scalability: GPT-4 is capable of handling massive data quantities and difficult jobs that would otherwise require a team of professionals.
  • Creativity: Humans might not think of or contemplate new, different ideas that GPT-4 can produce.
  • Adaptability: GPT-4 has the capacity to adapt its outputs in response to fresh information and user feedback.

However, using GPT-4 for financial analysis and decision-making could also pose some challenges, such as:
  • Reliability: GPT-4 is not error-free and may make mistakes or give false or erroneous results. It might also be susceptible to manipulation or hostile attacks.
  • Accountability: GPT-4 lacks transparency and might not offer justifications or explanations for its results. Also, it could be challenging to identify the original data and information sources.
  • Ethics: GPT-4 could produce results that are hurtful, discriminatory, or unethical because it might not reflect human values or preferences. It might also have an impact on people's decision-making autonomy and agency.

Therefore, in order to assure its security, caliber, and compatibility with human objectives and interests, employing GPT-4 for financial analysis and decision-making requires comprehensive review and control.

How GPT-4 will enhance financial education and literacy

Anybody who wishes to manage their money effectively and achieve their financial goals must have a solid understanding of finance. But many people lack the information and self-assurance needed to make wise and prudent financial decisions. GPT-4 is useful in this situation.

With some keywords or prompts, the potent natural language processing system GPT-4 can produce accurate and pertinent literature on any subject. GPT-4 is an excellent tool for developing individualized and interactive learning content for financial topics since it can comprehend and answer natural language queries.

For instance, based on a learner's financial literacy level, learning preferences, goals, and progress, GPT-4 can provide courses, quizzes, exercises, and feedback that are specifically tailored for them. GPT-4 can also offer clarifications, illustrations, advice, and recommendations to help students comprehend and use financial ideas and abilities in practical contexts.

Using a variety of formats, including text, audio, video, photos, charts, graphs, animations, games, simulations, etc., GPT-4 can also provide immersive and interesting learning experiences for students. According to the learner's performance and feedback, GPT-4 can also modify the content and level of difficulty of the learning exercises.

Learners can gain from a personalized, interactive, and thorough learning experience by utilizing GPT-4 to improve financial education and literacy. This can help them become more knowledgeable about money matters and to change the way they behave in financial situations.

However, there are some potential challenges of using GPT-4 for financial education and literacy such as:
  • In particular, if the input is ambiguous, lacking, or deceptive, GPT-4 may not always be accurate or reliable in producing factual or pertinent information. Before making any financial decisions, users may need to confirm the data with additional sources or subject-matter specialists.
  • Especially if the input is hostile, prejudiced, or destructive, GPT-4 may not always be ethical or responsible in producing suitable or helpful information. The risks and repercussions of relying on the knowledge or recommendations provided by GPT-4 may need to be considered by users.
  • The information generated by GPT-4 may not always be clear or appropriate, especially if the input is not in the user's preferred language, format, or level of difficulty. To utilize GPT-4 efficiently, users may require access to tools for translation, transcription, or adaptation.

How GPT-4 will transform financial services and products

Financial services and products are the other areas where GPT-4 may have a big impact. Legal terminology, financial jargon, and technical specifications are just a few examples of the complicated and specialized language that underpins many financial services and products. High levels of accuracy, security, and compliance are also necessary. For financial services and goods, GPT-4 can assist in developing more complex and user-friendly language-based systems, such as chatbots, virtual assistants, automated writing tools, etc.

Some of the possible applications of GPT-4 for financial services and products are:
  • Chatbots and virtual assistants: GPT-4 can be used to power virtual assistants and chatbots that can give consumers individualized and pertinent information and guidance about things like account balances, transaction history, investment alternatives, loan eligibility, etc. GPT-4 can also handle intricate and subtle demands, such as outlining the terms and conditions of a contract, negotiating a deal, or settling a disagreement. In addition, GPT-4 can spark interesting and natural dialogues that boost client loyalty and pleasure.
  • Automated writing tools: Contracts, invoices, statements, proposals, summaries, and other papers and reports needed for financial services and goods can all be written automatically with the aid of GPT-4. For the desired audience and purpose, GPT-4 may produce writings that are of the highest caliber and accuracy and adhere to the proper format, style, tone, and language. In order to make current documents more lucid, coherent, and accurate, GPT-4 may also edit and proofread them.
  • Data analysis and visualization: GPT-4 can assist in the analysis and visualization of substantial volumes of data that are pertinent to financial services and products, including market trends, consumer behavior, risk factors, performance indicators, etc. Insightful and succinct summaries and explanations of the data can be produced using GPT-4, along with appealing and interactive charts and graphs. In accordance with the information, GPT-4 can also provide answers and advice.

GPT-4 can produce more precise and sophisticated language-based systems that can improve the efficiency, quality, and accessibility of financial services and products, which is a game-changer for the industry. The use of GPT-4 can also lessen the expenses, mistakes, frauds, and risks connected to biases or human error. By offering more individualized and practical services and goods, GPT-4 can also enhance the client experience and pleasure.


The future of finance will be impacted by GPT-4, the most recent and sophisticated natural language processing model, in a number of ways, as we have examined in this piece. As we've shown, GPT-4 can improve financial research, automate customer support, produce financial reports, and even develop brand-new financial goods and services. We have also talked about some of the risks and difficulties that GPT-4 presents to the financial sector as well as society at large, including ethical, legal, and security concerns. GPT-4 is a game-changer for the finance industry since it can change how financial data is handled, shared, and used. To make sure that it is utilized appropriately and for the benefit of all stakeholders, it also needs to be carefully regulated and overseen.