"In The Predictive Edge: Outsmart the Market Using Generative AI and ChatGPT in Financial Forecasting, renowned AI and finance researcher Dr. Alejandro Lopez-Lira delivers an engaging and insightful new take on how to use large language models (LLMs) like ChatGPT to find new investment...

We use machine learning to construct a statistically optimal and unbiased benchmark for firms' earnings expectations. We show that analyst expectations are on average biased upwards, and that this bias exhibits substantial time-series and cross-sectional variation. On average, the bias increases...

We use machine learning to construct a statistically optimal and unbiased benchmark for firms' earnings expectations. We show that analyst expectations are on average biased upwards, and that this bias exhibits substantial time-series and cross-sectional variation. On average, the bias increases...

We introduce a real-time measure of conditional biases in firms' earnings forecasts. The measure is defined as the difference between analysts' expectations and a statistically optimal unbiased machine-learning benchmark. Analysts' conditional expectations are, on average, biased upwards, and...

Unlike stocks, options lack a robust mechanism to determine closing prices. Current practices relying on last-trade prices suffer from stale information, while closing quotes are unreliable due to consolidated trading and potential manipulation. We propose using machine learning to create a...