Earlier this week, AI technologies developer Anthropic launched the second version of their generative AI tool – Claude 2. Claude 2 is said to be capable of processing much larger bodies of text than ChatGPT, among its other benefits. It has some unique advantages over ChatGPT, some of which are highly relevant for people analysing financial markets.
What Is Claude 2?
Claude 2 is an advanced generative AI platform that aims to rival Open AI’s hugely popular ChatGPT. The tool is currently available in a beta version in the UK and the US.
The Claude 2 developer, California-based AI venture Anthropic, launched the tool’s first version, Claude, in mid-March. The second version was launched this week and represents a major upgrade of the system. Functionality now available in Claude 2 makes many observers convinced that ChatGPT has a formidable rival for the first time since the start of the generative AI mania last year.
Claude 2 Advantages Over Chat-GPT: This Guy Has Massive Context Window
The biggest advantage of Claud 2 over ChatGPT is the ability to process much larger amounts of text at the same time.
Generative AI tools typically process input and output text based on units called “tokens”. Depending on the model, a token can represent a character, a full word, or part of a word (subword). Both ChatGPT and Claude use the subword tokenisation model. Typically, with subword tokenisation, one full word requires anything between 0.5 and 1 token.
Chat-GPT4 has a limit of around 4,000 tokens, which translates to about 3,000-3,500 words. This is the limit for the “context window” of a chat with the tool. Within this limit, ChatGPT will remember the context of the discussion with you in terms of the inputs you provide and the outputs generated. When the limit has been reached, the tool will forget the context of the chat with you, which makes it less useful for lengthy back and forth discussions with it.
In comparison, Claude 2 has a massively larger token limit of 100,000. The tokenisation model used by Claude 2 is based on 1 token used for about 3.5 characters (not words!). With an average word plus the space after it being 6 characters, the 100,000 token limit would translate to about 60,000 words. This is Claude 2’s context window per each session.
Among the other advantages of Claude 2 is the focus on higher safety in terms of the generated content. Claude 2 is said to be less likely than ChatGPT to provide “inappropriate or harmful” responses - it’s a much more responsible fellow than its main rival.
Some users also report that Claude 2 might be better at more nuanced discussions, e.g., it can understand humour or sarcasm better than ChatGPT. However, this is a largely subjective observation.
What Practical Advantages Does Claude 2 Offer Over ChatGPT?
Claude 2’s much larger context window translates into some distinct advantages of this tool over ChatGPT, including advantages relevant for anyone analysing financial or business reports.
The first advantage is the tool’s ability to process large documents and quickly extract information requested in a prompt. This has significant practical value for market analysts and investors. Going through those lengthy industry coverage reports from the likes of McKinsey is no longer a daunting task. Claude 2 can analyse large reports and provide specific, targeted information from these reports.
Investors, analysts, and fund managers focused on commodity markets are particularly likely to see those large-scale reports that provide detailed coverage of some specific commodities. Lengthy coverage of factors affecting supply and demand, the state of the market in various regions and countries, and other details turn these segment overview reports into walls of text.
Perhaps you are interested in quickly summarising the key supply and demand factors across all geographies? Claude 2 can process a large report and provide you with such a summarisation.
ChatGPT, with its modest limits of around 3,000-3,500 words per context window, will simply fail to process a particularly large industry report. While ChatGPT might be a useful tool for writers and journalists generating shorter content, it’s of limited use for market analysts and investors who need to digest a large report.
Another practical advantage of Claude 2’s massive context window is the ability to engage in lengthy chat-style conversations with the user. You may ask Claude 2 questions and then refine and further the discussion based on its answers. This makes Claude 2 particularly useful as a virtual assistant type of tool. This advantage is applicable to a wide range of professionals who might need a knowledgeable assistant available at all times.
Slack, the provider of the massively popular messaging and team collaboration software, has already recognised Claude’s usefulness as a virtual assistant tool. Claude’s first version is already available as an add-on for Slack. No word yet on when and if the new second version will be integrated into the Slack platform.
There are possibly other practical advantages that Claude 2 brings to the table. However, the two use cases described above are likely to be the key areas where Claude 2 will shine over ChatGPT.
Claude 2 has some distinct functionality that might make it a perfect VA and a great analyser of large-scale business and finance reports. A generative AI tool that has big practical applications for market analysts and investors may have finally arrived. However, when using Claude 2, do take into account the inherent limitations of today’s generative AI tools. Similar to ChatGPT, Claude 2 cannot access the internet and, thus, has no ability to process real-time data. And just like ChatGPT, Claude 2 isn’t immune to fabricating “facts” on the go.
What Is Claude 2?
Claude 2 is an advanced generative AI platform that aims to rival Open AI’s hugely popular ChatGPT. The tool is currently available in a beta version in the UK and the US.
The Claude 2 developer, California-based AI venture Anthropic, launched the tool’s first version, Claude, in mid-March. The second version was launched this week and represents a major upgrade of the system. Functionality now available in Claude 2 makes many observers convinced that ChatGPT has a formidable rival for the first time since the start of the generative AI mania last year.
Claude 2 Advantages Over Chat-GPT: This Guy Has Massive Context Window
The biggest advantage of Claud 2 over ChatGPT is the ability to process much larger amounts of text at the same time.
Generative AI tools typically process input and output text based on units called “tokens”. Depending on the model, a token can represent a character, a full word, or part of a word (subword). Both ChatGPT and Claude use the subword tokenisation model. Typically, with subword tokenisation, one full word requires anything between 0.5 and 1 token.
Chat-GPT4 has a limit of around 4,000 tokens, which translates to about 3,000-3,500 words. This is the limit for the “context window” of a chat with the tool. Within this limit, ChatGPT will remember the context of the discussion with you in terms of the inputs you provide and the outputs generated. When the limit has been reached, the tool will forget the context of the chat with you, which makes it less useful for lengthy back and forth discussions with it.
In comparison, Claude 2 has a massively larger token limit of 100,000. The tokenisation model used by Claude 2 is based on 1 token used for about 3.5 characters (not words!). With an average word plus the space after it being 6 characters, the 100,000 token limit would translate to about 60,000 words. This is Claude 2’s context window per each session.
Among the other advantages of Claude 2 is the focus on higher safety in terms of the generated content. Claude 2 is said to be less likely than ChatGPT to provide “inappropriate or harmful” responses - it’s a much more responsible fellow than its main rival.
Some users also report that Claude 2 might be better at more nuanced discussions, e.g., it can understand humour or sarcasm better than ChatGPT. However, this is a largely subjective observation.
What Practical Advantages Does Claude 2 Offer Over ChatGPT?
Claude 2’s much larger context window translates into some distinct advantages of this tool over ChatGPT, including advantages relevant for anyone analysing financial or business reports.
The first advantage is the tool’s ability to process large documents and quickly extract information requested in a prompt. This has significant practical value for market analysts and investors. Going through those lengthy industry coverage reports from the likes of McKinsey is no longer a daunting task. Claude 2 can analyse large reports and provide specific, targeted information from these reports.
Investors, analysts, and fund managers focused on commodity markets are particularly likely to see those large-scale reports that provide detailed coverage of some specific commodities. Lengthy coverage of factors affecting supply and demand, the state of the market in various regions and countries, and other details turn these segment overview reports into walls of text.
Perhaps you are interested in quickly summarising the key supply and demand factors across all geographies? Claude 2 can process a large report and provide you with such a summarisation.
ChatGPT, with its modest limits of around 3,000-3,500 words per context window, will simply fail to process a particularly large industry report. While ChatGPT might be a useful tool for writers and journalists generating shorter content, it’s of limited use for market analysts and investors who need to digest a large report.
Another practical advantage of Claude 2’s massive context window is the ability to engage in lengthy chat-style conversations with the user. You may ask Claude 2 questions and then refine and further the discussion based on its answers. This makes Claude 2 particularly useful as a virtual assistant type of tool. This advantage is applicable to a wide range of professionals who might need a knowledgeable assistant available at all times.
Slack, the provider of the massively popular messaging and team collaboration software, has already recognised Claude’s usefulness as a virtual assistant tool. Claude’s first version is already available as an add-on for Slack. No word yet on when and if the new second version will be integrated into the Slack platform.
There are possibly other practical advantages that Claude 2 brings to the table. However, the two use cases described above are likely to be the key areas where Claude 2 will shine over ChatGPT.
Claude 2 has some distinct functionality that might make it a perfect VA and a great analyser of large-scale business and finance reports. A generative AI tool that has big practical applications for market analysts and investors may have finally arrived. However, when using Claude 2, do take into account the inherent limitations of today’s generative AI tools. Similar to ChatGPT, Claude 2 cannot access the internet and, thus, has no ability to process real-time data. And just like ChatGPT, Claude 2 isn’t immune to fabricating “facts” on the go.