GPT Has Become Financially Literate: Insights From Financial Literacy Tests Of GPT And A Preliminary Test Of How People Use It As A Source Of Advice
Paweł Niszczota, Sami Abbas. Finance Research Letters 2023 58 104333 2023 – 38 citations
[Paper]
We assess the ability of GPT – a large language model – to serve as a financial robo-advisor for the masses, by using a financial literacy test. Davinci and ChatGPT based on GPT-3.5 score 66% and 65% on the financial literacy test, respectively, compared to a baseline of 33%. However, ChatGPT based on GPT-4 achieves a near-perfect 99% score, pointing to financial literacy becoming an emergent ability of state-of-the-art models. We use the Judge-Advisor System and a savings dilemma to illustrate how researchers might assess advice-utilization from large language models. We also present a number of directions for future research.
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