GPT as a Financial Advisor

We assess the ability of GPT–a large language model–to serve as a financial robo-advisor for the masses, by combining a financial literacy test and an advice-utilization task (the Judge-Advisor System). Davinci and ChatGPT (variants of GPT) score 58% and 67% on the financial literacy test, respectively, compared to a baseline of 31%. However, people overestimated GPT's performance (79.3%), and in a savings dilemma, they relied heavily on advice from GPT (WOA = 0.65). Lower subjective financial knowledge increased advice-taking. We discuss the risk of overreliance on current large language models and how their utility to laypeople may change