Artificial intelligence has become a topic of great interest in various fields. In the finance sector, there is a growing concern about its potential to automate jobs and limit career opportunities. Dan Greene, a professor at the Wilbur O. and Ann Powers College of Business, noticed this concern among college students and took action.

The Quest to Understand ChatGPT in Finance

Greene's research on "How Much Does ChatGPT Know About Finance?" aimed to explore the effectiveness of large language models like ChatGPT in potentially replacing finance jobs. His study, forthcoming in the Financial Analysts Journal, revealed that while there is much talk about ChatGPT replacing jobs, the technology is still in its early stages and not as advanced as some claim. In finance, firsthand knowledge is still crucial.

Skills Test in the Classroom

In one of his finance classes, Greene organized a unit with three sections. In the first part, students asked ChatGPT basic financial questions and rated its effectiveness compared to a professional financial advisor on a three-point scale. This gave them an initial understanding of ChatGPT's capabilities. 1: The students were curious to see how ChatGPT would perform in answering these fundamental financial queries. They were surprised to find that while ChatGPT could provide some basic information, it often lacked the depth and context that a professional advisor could offer. This initial test set the stage for the students to further explore the limitations and potential of ChatGPT. 2: It became clear that ChatGPT was not a perfect replacement for a human financial advisor at this stage. The students realized that there was still a need for human expertise and experience in dealing with complex financial situations.

Testing ChatGPT's Replacement Potential

In the second section, students took on the role of clients and asked ChatGPT to provide personalized financial advice based on a client profile. This was a more practical test to see if ChatGPT could truly replace a human in this role. 1: The students were amazed at how ChatGPT could generate some general advice, but it often struggled to provide tailored solutions based on specific client circumstances. It became evident that a human advisor could better understand the unique needs and preferences of a client and offer more personalized recommendations. 2: This exercise highlighted the importance of human interaction and empathy in the financial advisory process. ChatGPT may be able to provide information, but it cannot replicate the human touch and understanding that is essential in building trust with clients.

Using ChatGPT as a Supplement

In the final section, students acted as financial advisors and used ChatGPT as a supplement rather than relying solely on it. 1: This approach allowed the students to see the value of ChatGPT as a tool to enhance their work. They could use ChatGPT to quickly access information and get initial ideas, but they still relied on their own knowledge and judgment to provide comprehensive financial advice. 2: By combining the use of ChatGPT with their own expertise, the students realized that they could become more efficient and effective financial advisors. It was a valuable lesson in how to integrate new technologies into their work while maintaining the core skills of the profession.For his finance lesson, Greene was recently awarded the 2024 Innovation in Teaching Award by the Financial Management Association (FMA) sponsored by the CFA Institute. This recognition highlights his efforts in using innovative practices to engage students and teach them relevant industry skills.Jennifer Siemens, Associate Dean for Faculty Excellence, stated, "As business faculty, our role is to prepare students for the rapidly changing workplace. Dr. Greene's research contributes to our understanding of AI's impact on finance, while his innovative teaching empowers business graduates with confidence and readiness for success."Want to Discuss?Get in touch and we will connect you with the author or another expert.Or email us at news@clemson.edu