A First Look at Financial Data Analysis Using ChatGPT-4o

Abstract

OpenAI's new flagship model, ChatGPT-4o, released on May 13, 2024, offers enhanced natural language understanding and more coherent responses. In this paper, we investigate ChatGPT-4o's capabilities in financial data analysis, including zero-shot prompting, time series analysis, risk and return analysis, and ARMA-GARCH estimation. We find that ChatGPT-4o's performance is generally comparable to traditional statistical software like Stata, though some errors and discrepancies arise due to differences in implementation. Despite these issues, our findings indicate that ChatGPT-4o has significant potential for real-world financial analysis. Integrating ChatGPT-4o into financial research and practice may lead to more efficient data processing, improved analytical capabilities, and better-informed investment decisions.

Keywords: ChatGPT, large language models, AI, finance research, academia, data analysis, stock return