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Generative AI and Finance

Author

Listed:
  • Andrea L. Eisfeldt

    (Anderson School of Management, University of California, Los Angeles, California, USA)

  • Gregor Schubert

    (Anderson School of Management, University of California, Los Angeles, California, USA)

Abstract

Since ChatGPT's release in 2022, demand for artificial intelligence (AI)–related skills in finance has grown rapidly, as generative AI drives significant technological changes in both the financial research field and the broader economy. We show that financial occupations are highly exposed to the productivity effects of generative AI, review the literature on the impact of ChatGPT on firm value, and provide directions for future research investigating the impact of this major technology shock. Generative AI also holds great potential as a tool for finance researchers and practitioners: We review and describe innovations in research methods linked to improvements in AI tools, along with their applications. We offer a practical introduction to available tools and advice for researchers in academia and industry interested in using these tools.

Suggested Citation

  • Andrea L. Eisfeldt & Gregor Schubert, 2025. "Generative AI and Finance," Annual Review of Financial Economics, Annual Reviews, vol. 17(1), pages 363-393, November.
    • Handle: RePEc:anr:refeco:v:17:y:2025:p:363-393
    DOI: 10.1146/annurev-financial-112923-020503
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    JEL classification:

    • C80 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - General
    • G00 - Financial Economics - - General - - - General
    • G10 - Financial Economics - - General Financial Markets - - - General (includes Measurement and Data)
    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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