Large Language Models in Finance: Advances and Impact

Alik Sokolov and Kathryn Wilkens discussed the revolution of natural language processing in recent years, and how it applies to various areas of investment management. Our ability to work with unstructured text data, which is abundant in investment management, has undergone several evolutions from the late 2010's: from sequence-to-sequence models for machine translation, to the advent of transformers and transfer learning, to the recent breakthroughs achieved by Large Language Models popularized by Chat GPT. These changes will have a profound impact on investment management, and we will examine several case studies and applications. We also examined the long-term future of various investment and wealth management roles, and especially the long-term impact on ESG and responsible investing.