People focus on LLM's and diffusion models because they are so omnipresent now. But an AI for stock picking and prediction that would be realy next level and outcompete the current ones cosistently would siphon of so much wealth it would basically own society if the operators were clever enough not to get so gready short term that the system would litterally collapse overnight.
I think we’ve already been aware of the limitations of ML models in the financial world. Historical financial data only predicts so well. If there was a way to make a money printing machine with ML it would’ve happened already. It’s a much easier problem space than language or image generation.
Financial data is not enough to describe the financial world. To predict the movement of meme stock, you'd need Reddit/Twitter/what have you data. It's not a limitation of ML per se, but a limitation on how much data we can feed the ML model.