Using GPT-4 for Financial Advice

Christian Fieberg, Lars Hornuf and David J. Streich

No 10529, CESifo Working Paper Series from CESifo

Abstract: We show that the recently released text-based artificial intelligence tool GPT-4 can provide suitable financial advice. The tool suggests specific investment portfolios that reflect an investor’s individual circumstances such as risk tolerance, risk capacity, and sustainability preference. Notably, while the suggested portfolios display home bias and are rather insensitive to the investment horizon, historical risk-adjusted performance is on par with a professionally managed benchmark portfolio. Given the current inability of GPT-4 to provide full-service financial advice, it may be used by financial advisors as a back-office tool for portfolio recommendation.

Keywords: GPT-4; ChatGPT; financial advice; artificial intelligence; portfolio management (search for similar items in EconPapers)
JEL-codes: G00 G11 (search for similar items in EconPapers)
Date: 2023
New Economics Papers: this item is included in nep-ain, nep-big and nep-cmp
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:ces:ceswps:_10529

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