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The Role of AI in Financial Forecasting: ChatGPT's Potential and Challenges

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  • Shuochen Bi
  • Tingting Deng
  • Jue Xiao

Abstract

The outlook for the future of artificial intelligence (AI) in the financial sector, especially in financial forecasting, the challenges and implications. The dynamics of AI technology, including deep learning, reinforcement learning, and integration with blockchAIn and the Internet of Things, also highlight the continued improvement in data processing capabilities. Explore how AI is reshaping financial services with precisely tAIlored services that can more precisely meet the diverse needs of individual investors. The integration of AI challenges regulatory and ethical issues in the financial sector, as well as the implications for data privacy protection. Analyze the limitations of current AI technology in financial forecasting and its potential impact on the future financial industry landscape, including changes in the job market, the emergence of new financial institutions, and user interface innovations. Emphasizing the importance of increasing investor understanding and awareness of AI and looking ahead to future trends in AI tools for user experience to drive wider adoption of AI in financial decision making. The huge potential, challenges, and future directions of AI in the financial sector highlight the critical role of AI technology in driving transformation and innovation in the financial sector

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  • Shuochen Bi & Tingting Deng & Jue Xiao, 2024. "The Role of AI in Financial Forecasting: ChatGPT's Potential and Challenges," Papers 2411.13562, arXiv.org.
    • Handle: RePEc:arx:papers:2411.13562
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    References listed on IDEAS

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    1. Dowling, Michael & Lucey, Brian, 2023. "ChatGPT for (Finance) research: The Bananarama Conjecture," Finance Research Letters, Elsevier, vol. 53(C).
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