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From fiction to fact: the growing role of generative AI in business and finance

Author

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  • Boyang Chen
  • Zongxiao Wu
  • Ruoran Zhao

Abstract

Generative Artificial Intelligence (AI), such as ChatGPT by OpenAI, has revolutionized the business world, with benefits including improved accessibility, efficiency, and cost reduction. This article reviews recent developments of generative AI in business and finance, summarizes its practical applications, provides examples of the latest generative AI tools, and demonstrates that generative AI can revolutionize data analysis in industry and academia. To test the ability of generative AI to support decision-making in financial markets, we use the ChatGPT to capture corporate sentiments towards environmental policy by inputting text extracted from corporate financial statements. Our results demonstrate that the sentiment scores generated by ChatGPT can predict firms’ risk-management capabilities and stock return performance. This study also highlights the potential challenges and limitations associated with generative AI. Finally, we propose several questions for future research at the intersection of generative AI with business and finance.

Suggested Citation

  • Boyang Chen & Zongxiao Wu & Ruoran Zhao, 2023. "From fiction to fact: the growing role of generative AI in business and finance," Journal of Chinese Economic and Business Studies, Taylor & Francis Journals, vol. 21(4), pages 471-496, October.
    • Handle: RePEc:taf:jocebs:v:21:y:2023:i:4:p:471-496
    DOI: 10.1080/14765284.2023.2245279
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    Cited by:

    1. Shore, Adam & Tiwari, Manisha & Tandon, Priyanka & Foropon, Cyril, 2024. "Building entrepreneurial resilience during crisis using generative AI: An empirical study on SMEs," Technovation, Elsevier, vol. 135(C).
    2. Zhisheng Chen, 2025. "Revolutionizing finance with conversational AI: a focus on ChatGPT implementation and challenges," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 12(1), pages 1-11, December.
    3. Zifeng Feng & Gangqing Hu & Bingxin Li & Jinge Wang, 2025. "Unleashing the power of ChatGPT in finance research: opportunities and challenges," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 11(1), pages 1-26, December.
    4. Varun Gupta & Hongji Yang, 2024. "Study protocol for factors influencing the adoption of ChatGPT technology by startups: Perceptions and attitudes of entrepreneurs," PLOS ONE, Public Library of Science, vol. 19(2), pages 1-15, February.
    5. Wu, Zongxiao & Dong, Yizhe & Li, Yaoyiran & Shi, Baofeng, 2025. "Unleashing the power of text for credit default prediction: Comparing human-written and generative AI-refined texts," European Journal of Operational Research, Elsevier, vol. 326(3), pages 691-706.
    6. Siddik, Abu Bakkar & Li, Yong & Du, Anna Min, 2024. "Unlocking funding success for generative AI startups: The crucial role of investor influence," Finance Research Letters, Elsevier, vol. 69(PB).
    7. Modgil, Sachin & Gupta, Shivam & Kar, Arpan Kumar & Tuunanen, Tuure, 2025. "How could Generative AI support and add value to non-technology companies – A qualitative study," Technovation, Elsevier, vol. 139(C).
    8. Dong, Mengming Michael & Stratopoulos, Theophanis C. & Wang, Victor Xiaoqi, 2024. "A scoping review of ChatGPT research in accounting and finance," International Journal of Accounting Information Systems, Elsevier, vol. 55(C).
    9. Agbon, Gildas, 2024. "Who speaks through the machine? Generative AI as discourse and implications for management," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 100(C).
    10. Julian Junyan Wang & Victor Xiaoqi Wang, 2025. "Assessing Consistency and Reproducibility in the Outputs of Large Language Models: Evidence Across Diverse Finance and Accounting Tasks," Papers 2503.16974, arXiv.org, revised Sep 2025.

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