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Large language models (LLMs) are increasingly deployed in quantitative finance for stock price forecasting. This review synthesizes recent applications of LLMs in this domain, including extracting sentiment from financial news and social…

Pricing of Securities · Quantitative Finance 2026-05-08 Olivia Zhang , Zhilin Zhang

The emergence of generative Artificial Intelligence (AI) has created new opportunities for economic text analysis. This study proposes a Wage Sentiment Index (WSI) constructed with Large Language Models (LLMs) to forecast wage dynamics in…

Computation and Language · Computer Science 2025-11-17 Taihei Sone

This article presents a comparative study of large language models (LLMs) in the task of sentiment analysis of financial market news. This work aims to analyze the performance difference of these models in this important natural language…

Statistical Finance · Quantitative Finance 2025-10-21 Lucas Eduardo Pereira Teles , Carlos M. S. Figueiredo

The rapid advancement of Large Language Models (LLMs) has spurred discussions about their potential to enhance quantitative trading strategies. LLMs excel in analyzing sentiments about listed companies from financial news, providing…

Computation and Language · Computer Science 2024-05-07 Haohan Zhang , Fengrui Hua , Chengjin Xu , Hao Kong , Ruiting Zuo , Jian Guo

Large language models (LLMs) enable researchers to analyze text at unprecedented scale and minimal cost. Researchers can now revisit old questions and tackle novel ones with rich data. We provide an econometric framework for realizing this…

Econometrics · Economics 2025-12-08 Jens Ludwig , Sendhil Mullainathan , Ashesh Rambachan

Large language models (LLMs) are increasingly used to predict human behavior. We propose a measure for evaluating how much knowledge a pretrained LLM brings to such a prediction: its equivalent sample size, defined as the amount of…

Econometrics · Economics 2026-01-21 Wayne Gao , Sukjin Han , Annie Liang

The remarkable achievements and rapid advancements of Large Language Models (LLMs) such as ChatGPT and GPT-4 have showcased their immense potential in quantitative investment. Traders can effectively leverage these LLMs to analyze financial…

Computation and Language · Computer Science 2023-10-11 Yujie Ding , Shuai Jia , Tianyi Ma , Bingcheng Mao , Xiuze Zhou , Liuliu Li , Dongming Han

As Large Language Models (LLMs) become widely used to model and simulate human behavior, understanding their biases becomes critical. We developed an experimental framework using Big Five personality surveys and uncovered a previously…

Artificial Intelligence · Computer Science 2024-11-25 Aadesh Salecha , Molly E. Ireland , Shashanka Subrahmanya , João Sedoc , Lyle H. Ungar , Johannes C. Eichstaedt

The prediction has served as a crucial scientific method in modern social studies. With the recent advancement of Large Language Models (LLMs), efforts have been made to leverage LLMs to predict the human features in social life, such as…

Computers and Society · Computer Science 2024-02-21 Kaiqi Yang , Hang Li , Hongzhi Wen , Tai-Quan Peng , Jiliang Tang , Hui Liu

Large Language Models (LLMs) are widely used for writing economic analysis reports or providing financial advice, but their ability to understand economic knowledge and reason about potential results of specific economic events lacks…

Computation and Language · Computer Science 2024-07-02 Yue Guo , Yi Yang

Artificial Intelligence (AI) is increasingly being integrated into scientific research, particularly in the social sciences, where understanding human behavior is critical. Large Language Models (LLMs) have shown promise in replicating…

Computation and Language · Computer Science 2025-06-23 Ziyan Cui , Ning Li , Huaikang Zhou

Large language models (LLMs) may not equitably represent diverse global perspectives on societal issues. In this paper, we develop a quantitative framework to evaluate whose opinions model-generated responses are more similar to. We first…

As AI becomes fundamental in sectors like healthcare, explainable AI (XAI) tools are essential for trust and transparency. However, traditional user studies used to evaluate these tools are often costly, time consuming, and difficult to…

Artificial Intelligence · Computer Science 2024-10-24 Francesco Bombassei De Bona , Gabriele Dominici , Tim Miller , Marc Langheinrich , Martin Gjoreski

Large Language Models (LLMs) have demonstrated impressive capabilities in reasoning and prediction across different domains. Yet, their ability to infer temporal regularities from structured behavioral data remains underexplored. This paper…

Investment Analysis is a cornerstone of the Financial Services industry. The rapid integration of advanced machine learning techniques, particularly Large Language Models (LLMs), offers opportunities to enhance the equity rating process.…

Machine Learning · Computer Science 2024-11-05 Kassiani Papasotiriou , Srijan Sood , Shayleen Reynolds , Tucker Balch

Recent advances in large language models (LLMs) have unlocked novel opportunities for machine learning applications in the financial domain. These models have demonstrated remarkable capabilities in understanding context, processing vast…

General Finance · Quantitative Finance 2024-06-19 Yuqi Nie , Yaxuan Kong , Xiaowen Dong , John M. Mulvey , H. Vincent Poor , Qingsong Wen , Stefan Zohren

Federal agencies and researchers increasingly use large language models to analyze and simulate public opinion. When AI mediates between the public and policymakers, accuracy across intersecting identities becomes consequential; inaccurate…

Computers and Society · Computer Science 2026-04-21 Sola Kim , Jieshu Wang , Marco A. Janssen , John M. Anderies

Large language models (LLMs) have demonstrated unprecedented emergent capabilities, including content generation, translation, and simulation of human behavior. Field experiments, on the other hand, are widely employed in social studies to…

Computers and Society · Computer Science 2025-05-22 Yaoyu Chen , Yuheng Hu , Yingda Lu

Large Language Models (LLMs) have drawn a lot of attention due to their strong performance on a wide range of natural language tasks, since the release of ChatGPT in November 2022. LLMs' ability of general-purpose language understanding and…

Computation and Language · Computer Science 2025-03-25 Shervin Minaee , Tomas Mikolov , Narjes Nikzad , Meysam Chenaghlu , Richard Socher , Xavier Amatriain , Jianfeng Gao

Scientific breakthroughs typically emerge through the surprising violation of established research ideas, yet quantifying surprise has remained elusive because it requires a coherent model of all contemporary scientific worldviews. Deep…

Social and Information Networks · Computer Science 2025-09-09 Zhen Zhang , James Evans