Stefan Jansen on How to Use ChatGPT and AI in Finance

In this episode of Macro Hive Conversations, Bilal Hafeez interviews Stefan Jansen, author of "Machine Learning for Algorithmic Trading," about the applications of machine learning in finance. Jansen discusses the differences between econometrics and machine learning, highlighting the latter's ability to handle high dimensionality and non-linearity. He also addresses why machine learning isn't universally adopted in finance, pointing out challenges like signal extraction and limited data history. The conversation explores the use of neural networks, transformers, and large language models like ChatGPT in finance, focusing on practical applications and the potential for synthetic data. Jansen also offers advice to young professionals entering the job market, emphasizing the importance of understanding data and predictive techniques.