Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/279279 
Year of Publication: 
2023
Series/Report no.: 
CESifo Working Paper No. 10529
Publisher: 
Center for Economic Studies and ifo Institute (CESifo), Munich
Abstract: 
We show that the recently released text-based artificial intelligence tool GPT-4 can provide suitable financial advice. The tool suggests specific investment portfolios that reflect an investor's individual circumstances such as risk tolerance, risk capacity, and sustainability preference. Notably, while the suggested portfolios display home bias and are rather insensitive to the investment horizon, historical risk-adjusted performance is on par with a professionally managed benchmark portfolio. Given the current inability of GPT-4 to provide full-service financial advice, it may be used by financial advisors as a back-office tool for portfolio recommendation.
Subjects: 
GPT-4
ChatGPT
financial advice
artificial intelligence
portfolio management
JEL: 
G00
G11
Document Type: 
Working Paper
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