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(Generative) AI in Financial Economics

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  • Hongwei Mo
  • Shumiao Ouyang

Abstract

This review article synthesizes the burgeoning literature on the intersection of (generative) artificial intelligence (AI) and finance. We organize our review around six key areas: (1) the emergent role of generative AI, especially large language models (LLMs), as analytic tools, external shocks to the economy, and autonomous economic agents; (2) corporate finance, focusing on how firms respond to and benefit from AI; (3) asset pricing, examining how AI brings novel methodologies for return predictability, stochastic discount factor estimation, and investment; (4) household finance, investigating how AI promotes financial inclusion and improves financial services; (5) labor economics, analyzing AI’s impact on labor market dynamics; and (6) the risks and challenges associated with AI in financial markets. We conclude by identifying unanswered questions and discussing promising avenues for future research.

Suggested Citation

  • Hongwei Mo & Shumiao Ouyang, 2025. "(Generative) AI in Financial Economics," Journal of Chinese Economic and Business Studies, Taylor & Francis Journals, vol. 23(4), pages 509-587, October.
    • Handle: RePEc:taf:jocebs:v:23:y:2025:i:4:p:509-587
    DOI: 10.1080/14765284.2025.2569006
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