IDEAS home Printed from https://ideas.repec.org/a/gam/jjrfmx/v17y2024i6p241-d1412445.html
   My bibliography  Save this article

ChatGPT, Help! I Am in Financial Trouble

Author

Listed:
  • Minh Tam Tammy Schlosky

    (College of Business and Management, University of Illinois Springfield, Springfield, IL 62703, USA)

  • Serkan Karadas

    (College of Business and Management, University of Illinois Springfield, Springfield, IL 62703, USA)

  • Sterling Raskie

    (Gies College of Business, University of Illinois Urbana-Champaign, Champaign, IL 61820, USA
    Blankenship Financial Planning, New Berlin, IL 62670, USA)

Abstract

This study examines the capability of ChatGPT to provide financial advice based on personal finance cases. We first write our own cases and feed them to ChatGPT to get its advice (recommendations) on them. Next, we assess the quality and the validity of ChatGPT’s recommendations on these cases. We find that ChatGPT serves as a suitable starting point, but its recommendations tend to be generic, and they often overlook alternative solutions and viewpoints and priority of recommendations. Overall, our analysis demonstrates the strengths and weaknesses of using ChatGPT in personal finance matters. Further, it serves as a helpful guide to financial advisors, households, and instructors of personal finance who are already using or considering using ChatGPT and want to develop a suitable understanding of the benefits and limitations of this new technology in addressing their professional and personal needs.

Suggested Citation

  • Minh Tam Tammy Schlosky & Serkan Karadas & Sterling Raskie, 2024. "ChatGPT, Help! I Am in Financial Trouble," JRFM, MDPI, vol. 17(6), pages 1-39, June.
    • Handle: RePEc:gam:jjrfmx:v:17:y:2024:i:6:p:241-:d:1412445
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1911-8074/17/6/241/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/1911-8074/17/6/241/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Pelster, Matthias & Val, Joel, 2024. "Can ChatGPT assist in picking stocks?," Finance Research Letters, Elsevier, vol. 59(C).
    2. Qianhua Liu & Ka-Ching Chan & Ranga Chimhundu, 2024. "Fintech research: systematic mapping, classification, and future directions," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 10(1), pages 1-33, December.
    3. Oehler, Andreas & Horn, Matthias, 2024. "Does ChatGPT provide better advice than robo-advisors?," Finance Research Letters, Elsevier, vol. 60(C).
    4. Dowling, Michael & Lucey, Brian, 2023. "ChatGPT for (Finance) research: The Bananarama Conjecture," Finance Research Letters, Elsevier, vol. 53(C).
    5. Ko, Hyungjin & Lee, Jaewook, 2024. "Can ChatGPT improve investment decisions? From a portfolio management perspective," Finance Research Letters, Elsevier, vol. 64(C).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ko, Hyungjin & Lee, Jaewook, 2024. "Can ChatGPT improve investment decisions? From a portfolio management perspective," Finance Research Letters, Elsevier, vol. 64(C).
    2. Ma, Feng & Lyu, Zhichong & Li, Haibo, 2024. "Can ChatGPT predict Chinese equity premiums?," Finance Research Letters, Elsevier, vol. 65(C).
    3. Beckmann, Lars & Hark, Paul F., 2024. "ChatGPT and the banking business: Insights from the US stock market on potential implications for banks," Finance Research Letters, Elsevier, vol. 63(C).
    4. Rice, Stephen & Crouse, Sean R. & Winter, Scott R. & Rice, Connor, 2024. "The advantages and limitations of using ChatGPT to enhance technological research," Technology in Society, Elsevier, vol. 76(C).
    5. Xuewen Han & Neng Wang & Shangkun Che & Hongyang Yang & Kunpeng Zhang & Sean Xin Xu, 2024. "Enhancing Investment Analysis: Optimizing AI-Agent Collaboration in Financial Research," Papers 2411.04788, arXiv.org.
    6. Smales, Lee A., 2023. "Classification of RBA monetary policy announcements using ChatGPT," Finance Research Letters, Elsevier, vol. 58(PC).
    7. Hoffmann, Stefan & Lasarov, Wassili & Dwivedi, Yogesh K., 2024. "AI-empowered scale development: Testing the potential of ChatGPT," Technological Forecasting and Social Change, Elsevier, vol. 205(C).
    8. Muhammad Tahir & Sufyan Ali & Ayesha Sohail & Ying Zhang & Xiaohua Jin, 2024. "Unlocking Online Insights: LSTM Exploration and Transfer Learning Prospects," Annals of Data Science, Springer, vol. 11(4), pages 1421-1434, August.
    9. Hassnian Ali & Ahmet Faruk Aysan, 2023. "What will ChatGPT revolutionize in the financial industry?," Modern Finance, Modern Finance Institute, vol. 1(1), pages 116-129.
    10. Amina Badreddine & Hadjira Larbi Cherif, 2023. "ChatGPT in Academic Research: Demonstrating Limitations through Real Practical Examples," Post-Print hal-04379581, HAL.
    11. Luo, Haohan & Liu, Xin & Lv, Xingyang & Hu, Yubei & Ahmad, Ali J., 2024. "Investors’ willingness to use robo-advisors: Extrapolating influencing factors based on the fiduciary duty of investment advisors," International Review of Economics & Finance, Elsevier, vol. 94(C).
    12. Alonso-Robisco, Andres & Carbó, José Manuel, 2023. "Analysis of CBDC narrative by central banks using large language models," Finance Research Letters, Elsevier, vol. 58(PC).
    13. Christian Fieberg & Lars Hornuf & David J. Streich, 2023. "Using GPT-4 for Financial Advice," CESifo Working Paper Series 10529, CESifo.
    14. Talaei-Khoei, Amir & Yang, Alan T. & Masialeti, Masialeti, 2024. "How does incorporating ChatGPT within a firm reinforce agility-mediated performance? The moderating role of innovation infusion and firms’ ethical identity," Technovation, Elsevier, vol. 132(C).
    15. Konstantinos I. Roumeliotis & Nikolaos D. Tselikas, 2023. "ChatGPT and Open-AI Models: A Preliminary Review," Future Internet, MDPI, vol. 15(6), pages 1-24, May.
    16. Li Xian Liu & Zhiyue Sun & Kunpeng Xu & Chao Chen, 2024. "AI-Driven Financial Analysis: Exploring ChatGPT’s Capabilities and Challenges," IJFS, MDPI, vol. 12(3), pages 1-35, June.
    17. Wang, Haibo, 2024. "Decoding herding dynamics in the generative AI investment amid key technological advancements: A timeline perspective," Finance Research Letters, Elsevier, vol. 64(C).
    18. Kim, Jang Ho, 2023. "What if ChatGPT were a quant asset manager," Finance Research Letters, Elsevier, vol. 58(PD).
    19. Yuqi Nie & Yaxuan Kong & Xiaowen Dong & John M. Mulvey & H. Vincent Poor & Qingsong Wen & Stefan Zohren, 2024. "A Survey of Large Language Models for Financial Applications: Progress, Prospects and Challenges," Papers 2406.11903, arXiv.org.
    20. Ardekani, Aref Mahdavi & Bertz, Julie & Bryce, Cormac & Dowling, Michael & Long, Suwan(Cheng), 2024. "FinSentGPT: A universal financial sentiment engine?," International Review of Financial Analysis, Elsevier, vol. 94(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jjrfmx:v:17:y:2024:i:6:p:241-:d:1412445. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.