While LLMs master language, LQMs master logic. We built a new class of generative AI designed specifically to understand stochasticity, non-linear relationships, and the mathematical rigor of finance.
Large Language Models (like GPT-4) are probabilistic token predictors. They "hallucinate" numbers because they treat math as a linguistic problem, not a logical one. They cannot natively perform Monte Carlo simulations or understand the concept of "variance."
LQMs are pre-trained on numerical time-series data and financial formulas. They utilize a VAE-GAN architecture to generate "synthetic futures"—mathematically plausible scenarios that respect the laws of economics.
How we generate accurate financial insights from noise.
Encodes sparse historical data (e.g., JSE prices) into a latent probability distribution.
The Generator creates synthetic data points. The Discriminator critiques them against GAAP rules and market logic.
Markets are random walks. Unlike linear regression models that draw a straight line, LQMs generate a "cloud" of probable outcomes, capturing volatility and tail risks.
In developing markets with limited data (like sparse options chains), LQMs can "fill in the blanks" by generating synthetic data points that are statistically indistinguishable from real history.
Financial relationships change. Correlations break during crashes. LQMs adapt to these regime changes dynamically, unlike static predictive models.
| Feature | Predictive AI (Legacy) | Large Language Models (LLMs) | Large Quantitative Models (LQMs) |
|---|---|---|---|
| Primary Data | Structured Tables | Text & Documents | Numerical Time-Series & Logic |
| Core Task | Regression / Classification | Token Prediction | Probability Distribution Generation |
| Handling Volatility | Poor (Assumes Linearity) | N/A (Hallucinates) | Excellent (Captures Stochasticity) |
| New Data Creation | None | Text Generation | Synthetic Financial Data |
| Use Case | Simple Forecasting | Report Writing / Sentiment | Complex Modeling / Risk Simulation |
FinanceGPT Agentic Platform is powered exclusively by LQMs.