ChatGPT is far from the only A.I. application on the market. A number of hedge funds have been using A.I. to help with mundane back-office work, from data entry to client communications, and JPMorgan Chase is leveraging the technology to help predict Federal Reserve officials actions. The bank even filed a trademark application earlier this year for IndexGPT, an A.I. software service that can be used for the selection of financial securities and financial assets. But on Wednesday, Fortune got an inside look at one of the latest generative A.I. tools institutional investors are usingBondGPT. 

The institutional fixed income broker dealer LTX, a subsidiary of the $18 billion fintech firm Broadridge Financial Solutions, just released its own generative A.I tech, based on OpenAIs GPT-4, to help answer bond-related questions and identify tradable corporate bonds on their platform. Jim Kwiatkowski, CEO of LTX, told Fortune that he hopes the product helps bond traders better inform and expedite vital pricing decisions by aggregating all of LTXs A.I. tools into an easy-to-use chatbot.

And if you know anything about bond trading, this could be a very big deal indeed. Consider the industry has not one but two bond kings, Bill Gross and Jeffrey Gundlach, billionaires who had the equivalent of BondGPT stored in their brains and parlayed that into unthinkable fortunes. 

But to understand the impact that BondGPT and other A.I. tools like it might have on the world of finance, you have to consider how we got here first.

The fastest adoption of any app in history

Generative A.I. technology is nothing new. But when OpenAI released ChatGPT last November, the revolution suddenly became very tangible. The A.I. chatbot was able to lure 100 million monthly active users in under two monthsthe fastest growth of any application in historyand investors were quick to jump on board. Microsoft, which offered a vote of confidence in OpenAI with a $10 billion investment in January, has seen its stock surge over 39% year-to-date amid the A.I. enthusiasm. Exchange traded funds that track A.I. stocks have followed suit.

The potential for A.I. to reshape the worlds economy is becoming increasingly difficult to deny these days. The billionaire investor and hedge fund legend Stanley Druckenmiller told CNBC last month that A.I. could be every bit as impactful as the internet, and in March, Microsoft co-founder Bill Gates called it as fundamental as the creation of the microprocessor or the mobile phone.

But Kwiatkowski revealed that BondGPT, while a massive leap forward for LTX, is merely another incremental step forward in the companys push into A.I. LTX has been building A.I. tools for our bond trading customers as long as weve been in existence. The challenge were trying to solve now is how do we pull all this data and all of these A.I. tools together and give somebody one simple user interface, the CEO said, noting that BondGPT is their first crack at that task.

In a sample demonstration, Kwiatkowski asked BondGPT to show us telecom bonds yielding between 5% and 8%, maturing after 2030. Within seconds, a list of bonds that fit that definition appeared, along with in-depth data about each one, a trade function, and a chart comparing the bonds yields and maturities.

Kwiatkowski also noted that BondGPT uses additional, non-GPT-4 A.I. systems that it created in-house to essentially fact-check BondGPTs answers before it gives them.

Theres another level of generative AI in BondGPT, which looks at the answer were about to provide the user and effectively compliance-checks it, he explained. So the first thing were doing is interpreting the question, the second thing were doing is gathering the data and forming the answer, and last but not least, were making sure weve done a good job.

As a registered broker dealer, LTX does not provide investment advice, which means BondGPT strictly provides data and trading options to educate institutional investors and save their valuable time. 

We really needed to fine-tune it that way, because we didnt want it to give you recommendations. Financial market participants dont want creative answers, they want factual answers, he explained.

That means, for now at least, generative A.I. systems like BondGPT wont be replacing any employees at hedge funds or trading housesbut they should help boost their productivity.

Its just the beginning for A.I. investing technology

While BondGPT and other generative A.I. tools that are meant for institutional investors represent a huge step forward in A.I. technology, Kwiatkowski said its really just the beginning of a new age in the field. 

To the best of his knowledge, BondGPT is the first institutional version of a ChatGPT-based investing tool that is in production and going on trading floors to be used by bond traders, but it wont be the last. Therell be others that are likely to be tuned around particular use cases, workflows, datasets. Its just going to evolve very, very rapidly from here.

Martin Koopman, Broadridges chief product officer and co-head of A.I., told Fortune that he expects A.I. advancements to surprise many consumers and even institutional investors. He noted that, in the past, A.I. tools were difficult to use and only available to Ph.D.s, but everything has changed over the last year.

The technologist described how he was able to use GPT-4 to program an entire website during a five-hour flight, something that would have taken him days or even weeks in the past. This level of increased productivity is coming for institutional investors, too, he says.

On top of that, because generative A.I. systems are now so skilled at writing software code, Koopman said he sees a point in the near future where A.I. applications could create their own A.I. software. And now youre into the room of science fiction writers and the implications of that are out of my pay depth, he said.

Waking up to work, even though you might not want to, has not so affectionately become known as part of the hustle. And while the pandemic has made many workers denounce such hustle culture, the truth of the matter is that many workers are hustling harder than ever to make ends meet as the cost of living continues to outpace stagnant wages. 

As many as two in five adults in the U.S. have a side hustle, according to a recent Bankrate survey of 2,500-plus adults, backing up LendingTree data from earlier this year that found side gigs are up by 13% over the past two years and recent Deloitte data that found more millennials and Gen Zers are adding on part-time jobs. Younger workers are more likely to need an extra job53% of Gen Zers and half of millennials have one, Bankrate finds, compared to only 40% of Gen Xers and 24% of baby boomers.

Its a reflection of the state of the economy, which has left many Americanseven those earning six-figuresfeeling like theyre living paycheck to paycheck. At the end of the day, side hustles have become a necessity for many who are struggling to compete with the pace of inflation and trying to save amid recession fears. It makes sense that younger workers are more likely to have one, considering that the cost of living has been their top concern and stressor for the past two years. Millennials in particular have been struggling to keep their heads above water for years after hopping around a rocky post-Great Recession job market, dealing with inordinate student debt, and shopping around a difficult housing marketall of which has made it harder for them to become financially independent.

Most Bankrate respondents (33%) said they need the job to afford regular living expenses, while 27% said it helps with discretionary spending. A quarter using the extra cash from the side gigs for savings, and 12% are using it to repay debt.

Side hustles have become more common, but like so many things in this inflationary environment, people are working harder but not necessarily getting ahead, said Bankrate senior industry analyst Ted Rossman in the report. Side hustlers are much more likely to view this extra income as essential, rather than a passion project or a way to get ahead financially.

For millennials and Gen Zers, the cost of living has been their top concern and top stress driver for the past two years, Deloittes global people and purpose leader Michele Parmelee recently told Fortune.

All the extra work is paying off for some; the average side hustler makes $810 monthly, Bankrate finds. Millennials make the most at an average of $1,022 monthly, while Gen Zers tend to make $753. But 28% of side hustlers make just between $1 to $50 monthly, enough to go see a Star War but not much else. 

Naturally, people who have insufficient salaries from their main job are more likely to need a side hustle. Nearly half (42%) of employees living in a low-income household of less than $50,000 say that they need side gig income for daily expenses, greater than any other demographic surveyed. However, households earning over $100,000 are most likely to have a side hustlebut theyre more likely to use their extra income for discretionary spending.

But side gigs arent just a fadat least, as long as minimum wages stay where they are. As Bankrate finds, almost a third of U.S. workers with side hustles (28%) say that theyll likely always need an extra gig to ensure theyre making ends meet.

For those diagnosed with breast cancer, the risk of dying is highest during the first five years after diagnosis. That risk has fallen from 14% in the 1990s to 5% today, a substantial improvement, the authors reported. Whats more, 60% of those diagnosed between 2010 and 2015 had a five-year mortality risk as low as 3%.

The findings are good news for the great majority of women diagnosed with early breast cancer today because their prognosis has improved so much, the authors said in a news release about the study.

Conclusions were drawn from the data of more than half a million English women diagnosed with early invasive breast cancer from 1993 through 2015. All were treated with surgery, and follow-up data was gathered in 2020.

Why breast cancer deaths are declining

The biology of the disease may have changed over the two decades the study took place due to hormonal changes tied to obesity, the use of hormone replacement therapy, and reproductive factors, the authors noted. 

The development of new therapies and the more precise targeting of interventions like surgery and radiotherapy undoubtedly contributed to the decrease in mortality during the study, they added.

U.S. cancer deaths have been on the decline for more than three decadesand stayed on the decline, even with the pandemic raging, according to a report released in January from the American Cancer Society.

While American cancer deaths have dropped by a third since 1991, breast cancer diagnoses have risen slowlyby about 0.5% per yearsince the mid-2000s, due in part to declines in the fertility rate and increases in obesity, according to the report.

More and more women are the primary earners in heterosexual relationships in the U.S., an enormous shift in household financial dynamics from even a few decades ago. But traditional thinking about money and relationships hasnt changed much, according to a new report, and that could continue to hold women back.

Around 30% of U.S. women in heterosexual couples earn more income than their spouse or partner, according to UBSs 2023 Own Your Worth report. But just half of those women breadwinners take the lead on financial responsibilities in their households, compared to 79% of men in the same position. And women who earn more are also less engaged in short- and long-term financial decisions, and feel less knowledgeable about investing than men.

Women are also much less likely than men to say financial decision-making is natural for them. Less half49%of women primary earners in heterosexual relationships say they prefer that arrangement, compared to 87% of men breadwinners.

The face of wealth is becoming increasingly female, says Carey Shuffman, head of UBSs womens strategic client segment. But theres a lot of room to grow.

UBSs report, which surveyed over 800 high-earning couples, points to a number of reasons for this unease. Theres societal pressures, which still favor traditional gender roles where the man in the relationship is in charge of the finances; in fact, half of the households with a woman breadwinner in UBSs survey said their friends and family assumed the man is the primary earner and they never corrected them.

And theres also internal insecurities from a male partner to contend with, says Shuffman. According to UBSs survey, men who are not the primary earner are less trustful of their wifes investing and spending habits than men who are the primary earner. And more than half of non-primary earning men say the financial arrangement causes tension in their relationship. Those same insecurities were less prevalent in same-sex female couples that UBS surveyed, and when women were the primary earner in opposite-sex relationships.

And then theres simply the lack of time many women have. Like other research has found, UBSs survey confirms that women breadwinners in relationships with men still take on the bulk of the housework and childcareunpaid labor that gives them less time to spend learning on and managing the household finances.

If you dont have time and you have a partner or spouse who doesit becomes very easy to create this divide and conquer approach, says Shuffman.

Previous research has found that as the gender pay gap closes between a husband and wife, the gender housework gap actually increases, with the higher-earning woman taking on even more housework, reflecting deeply held beliefs about who should be a breadwinner and who should take care of the home. Women do both.

Shuffman says acknowledging these dynamics is the first step to changing them. She says communication between partners and with financial professionals is important to help women take a more active role in their finances.

By calling out the challenges, hopefully thats a critical step to better support them on their financial journeys and knock down those barriers, she says.

The headlines were everywhere. Mattress, sofa, luggage, and shoe companies raised millions. Led by Ivy League grads, these startups promised to revolutionize the consumer goods industry. It was the middle of the 2010s, and the party was raging. Venture capitalists were pouring money into these companies. Their ads ran on subway and bus terminals in the worlds biggest cities. I launched my luxury clothing business in 2017. I wasnt sold on attending the VC party, but like anyone whos worked hard and feels accomplished, I expected an invitation. It never came. Were the other founders smarter? Did they work harder? Were their ideas better? Or did money make their companies shinewith bigger ads to make more noise, and deep-pocketed investors aiming to make returns?

 Less than one percent of venture capital went toward minority businesses then, an embarrassingly low figure that still holds true today. People say grit is the key to entrepreneurial success. But its money that keeps this party goingPeople say grit is the key to success. But its money that keeps this party goingand Black founders have been left off the guest list.

As the founder of apparel brand Baobab Clothing, Ive been invited to multiple accelerator programs. While I usually reject invitations for various reasons, I decided to join one focused on Black businesses created by a multinational consulting firm. The companys cachet led me to believe that this would be a valuable opportunity. This segregated program offered small business education and access to a business coach for 10 weeks. However, the program did not offer much-needed capital, facilitate key mentorship, or give access to selling opportunities. It became just another instance of a well-intended waste of time. 

Without capital or mentorship, who was the program designed to benefitthe entrepreneurs or the consulting companys brand value? These programs and the companies that support them must commit actual dollars in the form of purchases, legal support, advisory services, etcand look beyond their segregated nature by pairing Black founders with successful mentors regardless of race. In business, the only color that matters is green.

Without adequate financial resources, mentorship, and viable yet affordable locations to operate, Black entrepreneurs struggle to grow and scale. The stats are clear: Only 4% of Black businesses are still running after three-and-a-half years, compared to 55% of their peers. These inequalities affect not just the success of these businesses, but also the communities they serve and the economy as a whole. 

Never before has there been more awareness of this disparity or more desire to balance the scales. According to a McKinsey survey, 45% of consumers say they want corporations to support Black brands, vendors, and suppliers. And, for the last few years, supporting Black businesses has meant retailers cordoning off digital and physical space for 28 days during Black History Month to inspire consumers to direct their dollars accordingly.

As well-intentioned as these annual marketing campaigns are, they have the unintended consequence of exacerbating the isolation Black businesses already experience. When the marketing dollars dry up, these businesses are often faced with uncertainty for the rest of the year, bloated with inventory and battling for attention. It signals to consumers that they can buy products from Black businesses in this timeframe and then be absolved of their duty until the next year rolls around, keeping Black businesses on a perpetual plateau. 

Dont get me wrong. Increasing awareness of Black businesses has been a leap forward for society. Still, to ensure Black businesses dont simply tread water year after year, we need sustained attention. The rest of the year, systemic issues suppress our ability to make significant strides. What can we do to change it?

Consider Richelieu Dennis, founder of Sundial and SheaMoisture. When Target decided to carry his products in the ethnic hair-care aisle of the store, his business grewbut plateaued. He petitioned Target to integrate his brands into the mainstream beauty section, a move that was expensive, riskyand it paid off when Unilever bought his business for a reported $ 850 million in 2017. Black businesses shouldnt have to fight for crossover into mainstream markets. Retailers have a responsibility to seek out and showcase their products in a way that maximizes mutual success. Simply putting Black-made products in a separate section labeled as such isnt enough.

Its not only pricey shelf space and separate sections that box in Black businesses. Words do, too. The language surrounding marketing campaigns shrinks the world for Black business owners. Take the word support. You hear it all the time in campaigns that encourage consumers to buy from Black-owned businesses. Support positions buying from Black businesses as a chore and charity. It inadvertently robs customers of joy and minimizes the power and potential of the Black entrepreneur.

What long-term progress looks like

Big Business and consumers need a sustainable mindset to grow Black businesses well into the future. When trying to inspire change, words matter. Instead of suggesting consumers support Black businesses, use the term shop. Shopping solves a need and is meant to be fun. Encourage consumers to experience that enjoyment time and again, not once a year, with direct language.

With less access to traditional sources of capital, cash sales are essential for generating the income needed to purchase new inventory and the tenure required to borrow capital for scaling. Shopping Black brands year-round really does matter. Successes like the 15% Pledge, where big businesses commit to dedicating 15% of store shelves to Black businesses, will help consumers discover new Black-owned brands and shop consciously. Other tools can help too. The Shopify Shop App allows users to search by area or product. The Official Black Wall Street app, BlackOwned.com, and Blacked Owned Everything platform provide customers with a wide selection of items from around the world created by Black entrepreneurs. Sephora even offers its own curated page showcasing skincare and cosmetics by Black business owners.

As the head of Equitable Commerce for Shopify, along with my team, I aim to lower barriers that stifle growth for Black and Indigenous business owners. For corporations, this means providing the kind of opportunitiessuch as supplier diversity programsthat will mean the difference between breaking even and breaking through. 

We believe in growing the pie so when minority businesses make more money, the economy expands, and we all win. Shining a spotlight on Black businesses was a necessary first step and a tremendous stride. Now, we need to market them as prominently and consistently as any other business. 

Black businesses are just like any other businesses in America. They are an integral part of the American dream. They have always been and will always be a beautiful aspect of this great nation, and we should recognize the shared experience of small business owners regardless of race while also acknowledging the unique systematic barriers that black and other minority founders face. 

We should work toward a future where all entrepreneurs are given an equal chance to succeed. If there is a genuine desire to stimulate economic growth and achieve the American dream, then individuals, investors, and corporations must wield their economic might to advance Black businesses by shopping, providing access to business networks, and investing without bias or discrimination. After all, the American dream is not just for someits for everyone. So why is it taking so long for us to make it a reality for all?

Brandon Davenport is Shopifys head of equitable commerce.

The opinions expressed in Fortune.com commentary pieces are solely the views of their authors and do not necessarily reflect the opinions and beliefs of Fortune.

More must-read commentary published by Fortune:

For more than a year now, Federal Reserve officials have sought to tame inflation with a string of aggressive interest rate hikes, even as Wall Street warned that their policies could end up sparking a recession. But now, the Feds resolve amid the doomsday warnings appears to be paying off. The latest consumer price index (CPI) data shows their policies are helping to slowly return price stability to Americans. Year-over-year inflation fell for the 11th straight month to just 4% in May, the Bureau of Labor Statistics reported Tuesday.

The nearly 1% move lower in inflation from April to May is a feather in the cap for the Fed, which appears to be achieving its mandate of widespread price stability, Peter Essele, head of portfolio management at the RIA-independent broker/dealer Commonwealth Financial Network, told Fortune.

David Bahnsen, chief investment officer at The Bahnsen Group, a wealth management firm, went further, telling Fortune that his interpretation of the data is that it shows inflation has been defeated.

Not every economist agreed with them, however. The field is largely split on whether to be encouraged or not about year-over-year inflation falling to 4%, the lowest point in over two years. Seeing why this mostly positive report is so controversial requires looking between the lines.

The good, the bad and the ugly

The latest drop in inflation was mainly caused by falling energy and airfare prices. Energy prices dropped 11.7% year-over-year in May amid falling prices at the gas pump. The average price for a gallon of gasoline in the U.S. is now $3.59, down 28% from a year ago, according to the American Automobile Association. And there were even some outlandish drops within CPI segments in May, like the stunning collapse in the price of eggs even as food prices rose.

However, many areas of the economy still experienced persistent inflation last month. Food, shelter, and transportation prices all increased in May. Food prices jumped 6.7% from a year ago, driven by rising prices for fruit and vegetables, as well as nonalcoholic beverages. And shelter prices rose 8% year-over-year, even though median home prices fell in the first quarter, suggesting that rent is a difficult beast to tame.

David Bahnsen of The Bahnsen Group thinks the CPIs shelter data is a bit misleading, however. Most of the inflation we are seeing is coming from housing, but it takes time for home price declines to show up in the CPI data, so todays 4% inflation rate is actually much closer to the 2% Federal Reserve target, he said, noting this is why he believes the Feds war has been won.

Julia Pollock, ZipRecruiters chief economist, said that the inflation data is also encouraging news for the labor market as she believes it will allow the Fed to pause rate hikes for the rest of the year and even begin lowering rates in 2024.

The largest risk to the economic outlookthat inflation would prove sticky, requiring the Fed to throw even more cold water on the economyappears to have receded, she wrote in a Wednesday note. Disinflation is well underwayand measures using real-time, private-sector data, such as the truflation rate, suggest were even further along in returning to the Feds 2% inflation target than official data shows.

Just a headfake?

Although economists widely agree that the latest CPI data is a sign the Fed will pause its interest rate hikes this month, inflation is still well above the Feds 2% target. And some experts argue that disturbing trends in core inflation, a figure which excludes volatile food and energy prices, could spoil the Feds party. While year-over-year headline inflation fell to 4% in May, core inflation remained higher than most economists would like, at 5.3%. 

Dont get sidetracked by falling headline inflation. The real story from todays release is that core inflation remains persistently elevated, Morning Consults chief economist John Leer told Fortune. Despite the Feds aggressive increases in interest rates beginning last spring, core CPI has actually trended higher since last October. The Fed may pause hiking rates tomorrow, but it will have to raise rates again if it hopes to tame inflation.

It isnt just economists like Leer who fear the Fed may have to raise rates again later on this year in order to quash core inflation either. Jim Smigiel, chief investment officer at SEI, which manages, advises, or administers approximately $1.3 trillion in assets, said that core inflation came in hotter than expected in May, which means more rate hikesthat investors arent anticipatingwill eventually be necessary. 

In our view, market expectations are too settled on the pause at this point and the Fed will not want to surprise investors. However, with core still running with a 5-handle, the next move from the Fed is another hike in July and perhaps one more after that (which is not priced in at this point), he warned.

In other words, dear reader, wait and see. This fight isnt over yet.

Attendees at this years U.S. Open can mint up to five limited-edition proof-of-attendance protocol (POAP) NFTs this year through a partnership with American Express.

The digital collectibles for the golf tournament that runs from June 15 to 18 will feature artwork by lifestyle publication HYPEBEAST and the streetwear brand Metalwood Studio. The NFTs can be minted to a crypto wallet on each day of the tournament.

Five individual designs will be available to mint, and each will include the ability to buy exclusive merchandise from Metalwood Studio, such as a crewneck sweatshirt, T-shirt, bucket hat, or a driver head cover.

American Express is set to release five proof of attendance protocol (POAP) NFTs for attendees of the U.S. Open golf tournament this week.

Courtesy of American Express

In an email to Fortune, Lindsay Ulrey, Amexs vice president of global brand sponsorships and experiential marketing, said the company has successfully launched two previous POAPsat the Austin City Limits music festival and the American Express NBA 2K23 Lab Experience in New York.

We believe that Web3 applications will continue to grow as the technology improves, Ulrey added.

In a bid to engage the Web3 community, American Express also is teaming up with LinksDAO, a golf-focussed DAO, to provide a limited number of U.S. Open tickets to DAO members.

Created by U.S.-based company POAP, the special non-fungible tokens by the same name are meant to be proof to others that you attended a particular event. The non-fungible tokens took off after NFTs became mainstream in 2021 and since then companies like Adidas, eBay, and Spotify have launched their own.

The recent lawsuits against Coinbase and Binance brought forth by the Securities and Exchange Commission havent persuaded Amex to steer clear of Web3, Ulrey said.

We encourage regulators to establish the right safeguards for consumers and financial systems, while still allowing for innovation, Ulrey added.

Learn more about all things crypto with short, easy-to-read lesson cards. Click here for Fortunes Crypto Crash Course.

More Articles ...

  1. Bill Gates falls another notch on the worlds billionaire list, as AI takes Larry Ellison higher
  2. eToro to delist 4 cryptocurrencies named as securities in SEC lawsuits
  3. Goldman Sachs CEO sees bumps and pain for the economy even with a soft landingit will feel like a recession for Americans
  4. Treat Williams, versatile actor with nearly 50 years of credits, dies at 71 in motorcycle crash in Vermont
Page 60 of 1160

Newspapers

Spinning loader

Breaking News, data & opinions in business, sports, entertainment, travel, lifestyle, plus much more. IdigNews.com is the leading news source for the internet  users...

           

Business

Entertainment

POST GALLERY