AI, Opinion Ecosystems, and Finance

David Hirshleifer, Lin Peng, Qiguang Wang, Weichen Zhang and Xiaoyan Zhang ()

No 34807, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: Generative AI use for content generation is associated with divergent outcomes on different financial social media platforms: indications of reasoning enhancement on Seeking Alpha, and of belief distortions on WallStreetBets. On Seeking Alpha, adoption is associated with information frictions. AI-assisted postings tilt toward analysis/credibility, and their sentiment positively predicts future returns. Use of AI is associated with more informative retail order flow and lower bid-ask spreads. In contrast, AI adoption on WallStreetBets follows surges in retail buying, and AI-assisted content is associated with emotionality and sentiment contagion. Such content precedes higher trading volume, greater volatility, and more lottery-like return distributions.

JEL-codes: D02 D82 D83 D84 D9 G11 G12 G14 G2 G4 G5 K22 O33 (search for similar items in EconPapers)
Date: 2026-02
Note: AP
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