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 and Sami Abbas

Finance Research Letters, 2023, vol. 58, issue PA

Abstract: 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.

Keywords: Financial literacy; Robo-advice; Financial advice; Advice-utilization; Large language model; ChatGPT (search for similar items in EconPapers)
JEL-codes: D14 G11 G53 (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:58:y:2023:i:pa:s1544612323007055

DOI: 10.1016/j.frl.2023.104333

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