Liu, L. X.; Sun, Z.; Xu, K.; Chen, C. AI-Driven Financial Analysis: Exploring ChatGPT's Capabilities and Challenges. Preprints2024, 2024051517. https://doi.org/10.20944/preprints202405.1517.v1
APA Style
Liu, L. X., Sun, Z., Xu, K., & Chen, C. (2024). AI-Driven Financial Analysis: Exploring ChatGPT's Capabilities and Challenges. Preprints. https://doi.org/10.20944/preprints202405.1517.v1
Chicago/Turabian Style
Liu, L. X., Kunpeng Xu and Chao Chen. 2024 "AI-Driven Financial Analysis: Exploring ChatGPT's Capabilities and Challenges" Preprints. https://doi.org/10.20944/preprints202405.1517.v1
Abstract
This study investigates the transformative impact of ChatGPT, a cutting-edge AI language model developed by OpenAI, on the financial sector. We explore ChatGPT's applications in financial analysis, focusing on its ability to perform tasks traditionally handled by human analysts. By creating a set of multi-step and advanced reasoning financial tasks, and establishing several task-specific evaluation metrics, our experimental results demonstrate that ChatGPT-4o can effectively perform both basic and some complex financial analysis tasks comparable to those executed by humans. However, our empirical evaluation reveals limitations in its performance on complex tasks that require comprehensive understanding and critical thinking. The study highlights the necessity for meticulous task formulation and robust evaluation to achieve consistent functionality. While ChatGPT enhances efficiency in financial analysis, its integration with human expertise remains crucial for effective decision-making. This study contributes to the understanding of AI's role in finance and provides insights into its potential and constraints, guiding future integration of AI technologies in financial practices.
Keywords
Financial analysis; ChatGPT-4o; Financial modelling; Human-AI collaboration; Empirical evaluation; AI applications in finance
Subject
Business, Economics and Management, Finance
Copyright:
This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
