Generative AI in Finance
The aim of the special issue is to feature articles at the forefront of Generative AI research across a broad spectrum of interest including, but not limited to, corporate finance, fintech, digital finance, asset pricing, financial stability, banking, risk management, portfolio management, behavioral finance, personal finance, and real estate — all within the context of viable existing or potential future applications of Generative AI.
Guest editors:
Carol Alexander, University of Sussex
Lars Hornuf, TU Dresden
Denis Schweizer, Concordia University
Special issue information:
This Special Issue seeks to gather together a set of timely and top-tier research papers about the utilization of generative artificial intelligence (AI) in finance. „Generative AI“ pertains to computational methods that have the ability to use public and/or private data to create apparently novel and meaningful materials in the form of text, images, audio files and computer code. This rapidly evolving field presents both challenges and prospects for the financial and banking sectors. Submissions should enhance the understanding of viable existing and potential forthcoming applications of Generative AI in Finance. Two Workshops—in Dresden and Montreal—aim to provide authors with valuable insights from the editorial team prior to submission, and after submission those which are not desk rejected will be provided with constructive referee feedback in an expedited and well-organized review process.
Generative Pre-Trained Transformers (GPT) hold significant promise in the realm of financial research (Cook et al. 2023; Feuerriegel et al. 2023; Pelster and Val 2023). For example, Jiang et al. (2023) claim that they can forecast financial asset prices by extracting contextualized representations of news text on which they employ cutting-edge, large-scale language models. Their findings indicate that information from newswires becomes integrated into prices only after an inefficient delay period (which corresponds to the constraints of arbitrage opportunities) but that this very delay can be leveraged through real-time trading strategies. In a similar vein, Fieberg et al. (2023) extract financial advice from GPT-4 and show that it can provide suitable financial advice for retail investors, by suggesting specific investment portfolios that reflect an investor’s individual circumstances such as risk tolerance, risk capacity, and sustainability preference. And Jha et al. (2023) report that investment scores generated by ChatGPT applied to conference call transcripts are strongly predictive of a companies’ future capital expenditures. However, high-quality research on the application of Generative AI to resolve practical problems in financial markets is only just starting to emerge.
The aim of the special issue is to feature articles at the forefront of Generative AI research across a broad spectrum of interest including, but not limited to, corporate finance, fintech, digital finance, asset pricing, financial stability, banking, risk management, portfolio management, behavioral finance, personal finance, and real estate — all within the context of viable existing or potential future applications of Generative AI.
Manuscript submission information:
The submission system will be open from April 1, 2024. When submitting your manuscript to Editorial Manager, please select the article type “VSI: GenAI in Finance”. Please submit your manuscript before the submission deadline on January 31, 2025.
All submissions deemed suitable to be sent for peer review will be double-blind reviewed by independent reviewers. If your manuscript is accepted it will go into production immediately and will be simultaneously published in the current regular issue and pulled into the online Special Issue. Articles from this Special Issue will appear in different regular issues of the journal, though they will be clearly marked and branded as Special Issue articles.
Please see an example here: Journal of Banking & Finance | Special Issue: The Impact of Global Pandemic on Financial Markets and Institutions | ScienceDirect.com by Elsevier
Please ensure you read the Guide for Authors which together with a link to submit your manuscript is available on the Journal’s homepage at: Journal of Banking & Finance | ScienceDirect.com by Elsevier
Inquiries, including questions about appropriate topics, may be sent electronically to Lars Hornuf, lars.hornuf@tu-dresden.de
References:
Cook, T. R., Kazinnik, S., Hansen, A. L., & McAdam, P. (2023). Evaluating Local Language Models: An Application to Bank Earnings Calls (No. RWP 23-12).
Feuerriegel, S., Hartmann, J., Janiesch, C., & Zschech, P. (2023). Generative AI. Business & Information Systems Engineering, forthcoming.
Fieberg, C., Hornuf, L., & Streich, D. (2023). Using GPT-4 for Financial Advice. Available at SSRN 4488891.
Jha, M., Qian, J., Weber, M., & Yang, B. (2023). ChatGPT and Corporate Policies. Chicago Booth Research Paper, (23-15).
Jiang, J., Kelly, B. T., & Xiu, D. (2022). Expected Returns and Large Language Models. Available at SSRN.
Pelster, M., & Val, J. (2023). Can ChatGPT assist in picking stocks? Finance Research Letters, 104786.
Keywords:
Generative AI, Large Language Models, GPT, ChatGPT, Fintech, NLP
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