Can ChatGPT reduce human financial analysts’ optimistic biases?

Research output: Journal article publicationJournal articleAcademic researchpeer-review

19 Citations (Scopus)

Abstract

This paper examines the potential of ChatGPT, a large language model, as a financial advisor for listed firm performance forecasts. We focus on the constituent stocks of the China Securities Index 300 and compare ChatGPT’s forecasts for major financial performance measures with human analysts’ forecasts and the realised values. Our findings suggest that ChatGPT can correct the optimistic biases of human analysts. This study contributes to the literature by exploring the potential of ChatGPT as a financial advisor and demonstrating its role in reducing human biases in financial decision-making.

Original languageEnglish
Pages (from-to)20-33
Number of pages14
JournalEconomic and Political Studies
Volume12
Issue number1
DOIs
Publication statusPublished - 2 Jan 2024

Keywords

  • ChatGPT
  • analyst forecast
  • human–machine interaction
  • large language models
  • optimistic biases

ASJC Scopus subject areas

  • Sociology and Political Science
  • Economics and Econometrics
  • Political Science and International Relations

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