Opportunities and Problems Presented by ChatGPT to the Financial Industry

Abstract

ChatGPT marks the beginning of a new AI revolution, it has aroused strong concern from all walks of life. The generative AI represented by ChatGPT will have a huge impact on the financial industry. This paper reviews the basic development and functional application of ChatGPT. On this basis, this paper discusses the opportunities and challenges presented by ChatGPT to the financial industry. Moreover, the main problems still existing in applications and the matching solutions are pointed out as well. The literature shows that ChatGPT has potential to help financial organizations improve risk control ability, market insight and market competitiveness, thanks to its powerful natural language processing, data collation and data analysis capabilities. But ChatGPT also brings various issues, such as data privacy and securities issue, accuracy and timeliness issue, legal risks, and ethical issue at the same time. ChatGPT is a "double-edged sword", it should be used appropriately to achieve "finance for people".