Markets and Businesses See Shifts Three Years After ChatGPT’s Introduction

Three years after its debut, ChatGPT has emerged as a major force in shaping both technology and market trends. The product arrived at a time when investors were grappling with one of the toughest periods since the global financial crisis. Interest in artificial intelligence surged rapidly, sparking innovation and nudging market sentiment upward after years of muted growth.

Market Recovery Before and After ChatGPT

Prior to ChatGPT being unveiled on November 30, 2022, the S&P 500 had already hit the bottom of its post-COVID decline on October 12, falling 25% from the record high it had reached at the start of the year. Weeks after the AI tool was launched, the index had climbed back nearly 13% from that low, though it would not reach a new high until January 2024. 

Following the launch of ChatGPT, other areas of the economy and business world also began to shift:

• Stock prices have climbed sharply, and large-scale infrastructure expansion has progressed across the country.
• At the same time, workplace processes have shifted, prompting companies to rethink how they operate.
• Staffing requirements have undergone major changes, reflecting the broader adjustments happening in businesses.

Shifts in the Economy and Job Market

The economic effects of these changes have not been evenly distributed. Wealth has increased for investors and business owners, while wage earners face rising challenges. This growing divide is visible in both corporate and consumer sectors, highlighting that gains from technological advances are not shared equally.

Despite these differences across the economy, both markets and overall conditions began to show signs of improvement. In the final months of 2022, inflation was still rising , and the Federal Reserve continued lifting interest rates to slow price growth. This created a difficult environment for the technology sector, which was hit especially hard at the time.

Several major technology companies experienced steep declines in the months leading up to ChatGPT’s introduction. Nvidia, Meta, and Palantir each lost nearly 70% of their value. Apple dropped around 30%, Alphabet slipped close to 40%, and Amazon saw its share price reduced by about half.

Following this period, the S&P 500 began to rise, eventually increasing more than 70% since ChatGPT’s debut. At the same time, job vacancies have declined by about 30%, highlighting a contrast between booming markets and a weakening job sector. This drop in job openings is linked to interest rate adjustments rather than AI, according to journalist Derek Thompson, with job vacancies already peaking several months before ChatGPT was released.

OpenAI’s Growth and ChatGPT’s Lasting Impact

Alongside this, OpenAI’s valuation has grown dramatically since launching ChatGPT. The company had been worth $14 billion eighteen months before the release. It is now estimated at $500 billion, placing it among the top privately held companies worldwide.

At its introduction, ChatGPT came with a brief announcement, saying, “We’ve trained a model called ChatGPT which interacts in a conversational way. The dialogue format makes it possible for ChatGPT to answer followup questions, admit its mistakes, challenge incorrect premises, and reject inappropriate requests. We are excited to introduce ChatGPT to get users’ feedback and learn about its strengths and weaknesses.”

The AI tool is now entering its fourth year, and the developments it set in motion continue to shape how progress in artificial intelligence is viewed.