Unleashing the Power of ChatGPT in Finance Research: Opportunities and Challenges

50 Pages Posted: 25 Apr 2023 Last revised: 11 Oct 2023

See all articles by Zifeng Feng

Zifeng Feng

The University of Texas at El Paso

Gangqing Hu

West Virginia University

Bingxin Li

West Virginia University; West Virginia University - Department of Finance

Date Written: May 29, 2024

Abstract

Natural language processing (NLP) technologies, such as ChatGPT, are revolutionizing various fields, including finance research. This article explores the potential of ChatGPT as a transformative tool for finance researchers. We illustrate various applications of ChatGPT in finance research, from analyzing financial charts and providing coding support to the theoretical derivation of financial models. Significant advances in multimodal learning, such as Visual Referring Prompting (VRP), are also explored for their potential to enhance ChatGPT's image analysis capabilities. Furthermore, we conduct a comparative analysis of ChatGPT-3.5, ChatGPT-4, and Microsoft Bing to examine their distinct features, strengths, and weaknesses to provide valuable insights into their applicability in finance research. We demonstrate the innovative opportunities and insights provided by the development of ChatGPT to enrich the financial research process. By addressing the potential pitfalls and ethical considerations associated with using ChatGPT, we aim to promote responsible AI adoption and a more in-depth understanding of the role of advanced NLP technologies in shaping the future of finance research and practice. Overall, this paper underscores ChatGPT's transformative role in finance research, detailing its applications, benefits, and challenges, and advocating for ethical AI adoption to shape the future of the field.

Keywords: ChatGPT, natural language processing, large language models, AI, finance research, academia, opportunities, C89, O33

JEL Classification: G00, C89, O33

Suggested Citation

Feng, Zifeng and Hu, Gangqing and Li, Bingxin, Unleashing the Power of ChatGPT in Finance Research: Opportunities and Challenges (May 29, 2024). Available at SSRN: https://ssrn.com/abstract=4424979 or http://dx.doi.org/10.2139/ssrn.4424979

Zifeng Feng (Contact Author)

The University of Texas at El Paso ( email )

500 W. University Ave.
El Paso, TX 79968
United States

HOME PAGE: http://https://sites.google.com/view/zifeng-feng/home

Gangqing Hu

West Virginia University

Bingxin Li

West Virginia University ( email )

Chambers College of Business and Economics
Morgantown, WV 26506
United States
304-293-2777 (Phone)

West Virginia University - Department of Finance ( email )

Chambers College of Business and Economics
Morgantown, WV 26506
United States
304-293-2777 (Phone)

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