NLP & Large Language Models

This research dissects financial equity research reports (ERRs) by mapping their content into categories. There is insufficient empirical analysis of the questions answered in ERRs. In particular, it is not understood how frequently certain information appears, what information is considered essenti

We propose the use of conversational GPT models for easy and quick few-shot text classification in the financial domain using the Banking77 dataset. Our approach involves in-context learning with GPT-3.5 and GPT-4, which minimizes the technical expertise required and eliminates the need for expensiv

We develop an NLP-based procedure for detecting systematic nonmeritorious consumer complaints, simply called systematic anomalies, among complaint narratives. While classification algorithms are used to detect pronounced anomalies, in the case of smaller and frequent systematic anomalies, the algori

Knowing which factors are significant in credit rating assignment leads to better decision-making. However, the focus of the literature thus far has been mostly on structured data, and fewer studies have addressed unstructured or multi-modal datasets. In this paper, we present an analysis of the mos

News can convey bearish or bullish views on financial assets. Institutional investors need to evaluate automatically the implied news sentiment based on textual data. Given the huge amount of news articles published each day, most of which are neutral, we present a systematic news screening method t

There has been growing interest in applying NLP techniques in the financial domain, however, resources are extremely limited. This paper introduces StockEmotions, a new dataset for detecting emotions in the stock market that consists of 10,000 English comments collected from StockTwits, a financial

We introduce RFC Bench, a benchmark for evaluating large language models on financial misinformation under realistic news. RFC Bench operates at the paragraph level and captures the contextual complexity of financial news where meaning emerges from dispersed cues. The benchmark defines two complemen

This paper investigates how Large Language Models (LLMs) from leading providers (OpenAI, Google, Anthropic, DeepSeek, and xAI) can be applied to quantitative sector-based portfolio construction. We use LLMs to identify investable universes of stocks within S&P 500 sector indices and evaluate how the

We introduce obfuscation testing, a novel methodology for validating whether large language models detect structural market patterns through causal reasoning rather than temporal association. Testing three dealer hedging constraint patterns (gamma positioning, stock pinning, 0DTE hedging) on 242 tra

We study a \emph{QDisCoCirc}-inspired, chunked diagram-to-circuit quantum natural language processing (QNLP) model for three-class sentiment classification of financial texts. In our classical simulations, we keep the Hilbert-space dimension manageable by decomposing each sentence into short contigu

This paper presents a Multi Agent Bitcoin Trading system that utilizes Large Language Models (LLMs) for alpha generation and portfolio management in the cryptocurrencies market. Unlike equities, cryptocurrencies exhibit extreme volatility and are heavily influenced by rapidly shifting market sentime

Conditional risk minimization arises in high-stakes decisions where risk must be assessed in light of side information, such as stressed economic conditions, specific customer profiles, or other contextual covariates. Constructing reliable conditional distributions from limited data is notoriously d

In finance, Large Language Models (LLMs) face frequent knowledge conflicts arising from discrepancies between their pre-trained parametric knowledge and real-time market data. These conflicts are especially problematic in real-world investment services, where a model’s inherent biases can misalign w

Large Language Models (LLMs) exhibit remarkable capabilities across a spectrum of tasks in financial services, including report generation, chatbots, sentiment analysis, regulatory compliance, investment advisory, financial knowledge retrieval, and summarization. However, their intrinsic complexity

We aim to enhance a price sentiment index and to more precisely understand price trends from the perspective of not only consumers but also businesses. We extract comments related to prices from the Economy Watchers Survey conducted by the Cabinet Office of Japan and classify price trends using a la

This study proposes an innovative evaluation method based on large language models (LLMs) specifically designed to measure the digital transformation (DT) process of enterprises. By analyzing the annual reports of 4407 companies listed on the New York Stock Exchange and Nasdaq from 2005 to 2022, a c

Design/methodology/approach This research evaluated the databases of SQL, No-SQL and graph databases to compare and contrast efficiency and performance. To perform this experiment the data were collected from multiple sources including stock price and financial news. Python is used as an interface t

We used a dataset of daily Bloomberg Financial Market Summaries from 2010 to 2023, reposted on large financial media, to determine how global news headlines may affect stock market movements using ChatGPT and a two-stage prompt approach. We document a statistically significant positive correlation b

There is a consensus about the good sensing characteristics of Twitter to mine and uncover knowledge in financial markets, being considered a relevant feeder for taking decisions about buying or holding stock shares and even for detecting stock manipulation. Although Twitter hashtags allow to aggreg

The hallucination issue is recognized as a fundamental deficiency of large language models (LLMs), especially when applied to fields such as finance, education, and law. Despite the growing concerns, there has been a lack of empirical investigation. In this paper, we provide an empirical examination

The impact of non-deterministic outputs from Large Language Models (LLMs) is not well examined for financial text understanding tasks. Through a compelling case study on investing in the US equity market via news sentiment analysis, we uncover substantial variability in sentence-level sentiment clas

For a financial analyst, the question and answer (Q&A) segment of the company financial report is a crucial piece of information for various analysis and investment decisions. However, extracting valuable insights from the Q&A section has posed considerable challenges as the conventional methods suc

In the swiftly expanding domain of Natural Language Processing (NLP), the potential of GPT-based models for the financial sector is increasingly evident. However, the integration of these models with financial datasets presents challenges, notably in determining their adeptness and relevance. This p

Financial portfolio management describes the task of distributing funds and conducting trading operations on a set of financial assets, such as stocks, index funds, foreign exchange or cryptocurrencies, aiming to maximize the profit while minimizing the loss incurred by said operations. Deep Learnin

This paper investigates the impact of the adoption of generative AI on financial stability. We conduct laboratory-style experiments using large language models to replicate classic studies on herd behavior in trading decisions. Our results show that AI agents make more rational decisions than humans

The emergence of Generative AI (Gen AI) has motivated an interest in understanding how it could be used to enhance productivity across various tasks. We add to research results for the performance impact of Gen AI on complex knowledge-based tasks in a public sector setting. In a pre-registered exper

This paper presents the system description of our entry for the COLING 2025 FMD challenge, focusing on misinformation detection in financial domains. We experimented with a combination of large language models, including Qwen, Mistral, and Gemma-2, and leveraged pre-processing and sequential learnin

Identifying client needs to provide optimal services is crucial in tourist destination management. The events held in tourist destinations may help to meet those needs and thus contribute to tourist satisfaction. As with product management, the creation of hierarchical catalogs to classify those eve

Peer-to-peer (P2P) lending connects borrowers and lenders through online platforms but suffers from significant information asymmetry, as lenders often lack sufficient data to assess borrowers’ creditworthiness. This paper addresses this challenge by leveraging BERT, a Large Language Model (LLM) kno

Accurate industry classification is a critical tool for many asset management applications. While the current industry gold-standard GICS (Global Industry Classification Standard) has proven to be reliable and robust in many settings, it has limitations that cannot be ignored. Fundamentally, GICS is

Predicting future direction of stock markets using the historical data has been a fundamental component in financial forecasting. This historical data contains the information of a stock in each specific time span, such as the opening, closing, lowest, and highest price. Leveraging this data, the fu

Trust mechanisms diverge between centralized and decentralized exchanges, representing distinct sociotechnical governance paradigms. However, quantifying trust dynamics and their redistribution between these architectures remains empirically challenging, limiting understanding of how institutional s

Financial exclusion constrains entrepreneurship, increases income volatility, and widens wealth gaps. Underbanked consumers in Istanbul often have no bureau file because their earnings and payments flow through informal channels. To study how such borrowers can be evaluated we create a synthetic dat

High-stakes decision domains are increasingly exploring the potential of Large Language Models (LLMs) for complex decision-making tasks. However, LLM deployment in real-world settings presents challenges in data security, evaluation of its capabilities outside controlled environments, and accountabi

The financial market is known to be highly sensitive to news. Therefore, effectively incorporating news data into quantitative trading remains an important challenge. Existing approaches typically rely on manually designed rules and/or handcrafted features. In this work, we directly use the news sen

Large language models are reshaping quantitative investing by turning unstructured financial information into evidence-grounded signals and executable decisions. This survey synthesizes research with a focus on equity return prediction and trading, consolidating insights from domain surveys and more

Accurate electricity price forecasting (EPF) is crucial for effective decision-making in power trading on the spot market. While recent advances in generative artificial intelligence (GenAI) and pre-trained large language models (LLMs) have inspired the development of numerous time series foundation

With the introduction of the PSD2 regulation in the EU which established the Open Banking framework, a new window of opportunities has opened for banks and fintechs to explore and enrich Bank transaction descriptions with the aim of building a better understanding of customer behavior, while using t

Risk management in finance involves recognizing, evaluating, and addressing financial risks to maintain stability and ensure regulatory compliance. Extracting relevant insights from extensive regulatory documents is a complex challenge requiring advanced retrieval and language models. This paper int

This project introduces an end-to-end trading system that leverages Large Language Models (LLMs) for real-time market sentiment analysis. By synthesizing data from financial news and social media, the system integrates sentiment-driven insights with technical indicators to generate actionable tradin

This paper introduces BreakGPT, a novel large language model (LLM) architecture adapted specifically for time series forecasting and the prediction of sharp upward movements in asset prices. By leveraging both the capabilities of LLMs and Transformer-based models, this study evaluates BreakGPT and o

In the Venture Capital (VC) industry, predicting the success of startups is challenging due to limited financial data and the need for subjective revenue forecasts. Previous methods based on time series analysis often fall short as they fail to incorporate crucial inter-company relationships such as

Recent advances in large language models (LLMs) have unlocked novel opportunities for machine learning applications in the financial domain. These models have demonstrated remarkable capabilities in understanding context, processing vast amounts of data, and generating human-preferred contents. In t

As financial institutions and professionals increasingly incorporate Large Language Models (LLMs) into their workflows, substantial barriers, including proprietary data and specialized knowledge, persist between the finance sector and the AI community. These challenges impede the AI community’s abil

This paper explores the intersection of Natural Language Processing (NLP) and financial analysis, focusing on the impact of sentiment analysis in stock price prediction. We employ BERTopic, an advanced NLP technique, to analyze the sentiment of topics derived from stock market comments. Our methodol

We propose and study the integration of sentiment analysis and deep reinforcement learning ensemble algorithms for stock trading by evaluating strategies capable of dynamically altering their active agent given the concurrent market environment. In particular, we design a simple-yet-effective method

Large language models (LLMs) are increasingly deployed in quantitative finance for stock price forecasting. This review synthesizes recent applications of LLMs in this domain, including extracting sentiment from financial news and social media, analyzing financial reports and earnings-call transcrip

Large Language Models (LLMs) excel at general code generation, yet translating natural-language trading intents into correct option strategies remains challenging. Real-world option design requires reasoning over massive, multi-dimensional option chain data with strict constraints, which often overw

Forecasting crude oil prices remains challenging because market-relevant information is embedded in large volumes of unstructured news and is not fully captured by traditional polarity-based sentiment measures. This paper examines whether multi-dimensional sentiment signals extracted by large langua

Post-hoc explainability is central to credit risk model governance, yet widely used tools such as coefficient-based attributions and SHapley Additive exPlanations (SHAP) often produce numerical outputs that are difficult to communicate to non-technical stakeholders. This paper investigates whether l

Recent works have increasingly applied Large Language Models (LLMs) as agents in financial stock market simulations to test if micro-level behaviors aggregate into macro-level phenomena. However, a crucial question arises: Do LLM agents’ behaviors align with real market participants? This alignment

This paper addresses stock price movement prediction by leveraging LLM-based news sentiment analysis. Earlier works have largely focused on proposing and assessing sentiment analysis models and stock movement prediction methods, however, separately. Although promising results have been achieved, a c

We introduce LemonadeBench v0.5, a minimal benchmark for evaluating economic intuition, long-term planning, and decision-making under uncertainty in large language models (LLMs) through a simulated lemonade stand business. Models must manage inventory with expiring goods, set prices, choose operatin

Stock prediction, a subject closely related to people’s investment activities in fully dynamic and live environments, has been widely studied. Current large language models (LLMs) have shown remarkable potential in various domains, exhibiting expert-level performance through advanced reasoning and c

The Federal Open Market Committee (FOMC) sets the federal funds rate, shaping monetary policy and the broader economy. We introduce \emph{FedSight AI}, a multi-agent framework that uses large language models (LLMs) to simulate FOMC deliberations and predict policy outcomes. Member agents analyze str

This article explores the potential of generative AI (GenAI) to support actuarial practice through four implemented case studies. It situates these case studies within the broader evolution of artificial intelligence in actuarial science, from early neural networks and machine learning to modern tra

In the modern financial sector, the exponential growth of data has made efficient and accurate financial data analysis increasingly crucial. Traditional methods, such as statistical analysis and rule-based systems, often struggle to process and derive meaningful insights from complex financial infor

Stock trend forecasting, a challenging problem in the financial domain, involves ex-tensive data and related indicators. Relying solely on empirical analysis often yields unsustainable and ineffective results. Machine learning researchers have demonstrated that the application of random forest algor

Detecting anomalies in general ledger data is of utmost importance to ensure trustworthiness of financial records. Financial audits increasingly rely on machine learning (ML) algorithms to identify irregular or potentially fraudulent journal entries, each characterized by a varying number of transac

This study investigates the relationship between narratives conveyed through microblogging platforms, namely Twitter, and the value of crypto assets. Our study provides a unique technique to build narratives about cryptocurrency by combining topic modelling of short texts with sentiment analysis. Fi

Recently, large language models (LLMs) like ChatGPT have demonstrated remarkable performance across a variety of natural language processing tasks. However, their effectiveness in the financial domain, specifically in predicting stock market movements, remains to be explored. In this paper, we condu

This study presents a three-step machine learning framework to predict bubbles in the S&P 500 stock market by combining financial news sentiment with macroeconomic indicators. Building on traditional econometric approaches, the proposed approach predicts bubble formation by integrating textual and q

Deep learning offers new tools for portfolio optimization. We present an end-to-end framework that directly learns portfolio weights by combining Long Short-Term Memory (LSTM) networks to model temporal patterns, Graph Attention Networks (GAT) to capture evolving inter-stock relationships, and senti

Predicting financial markets and stock price movements requires analyzing a company’s performance, historic price movements, industry-specific events alongside the influence of human factors such as social media and press coverage. We assume that financial reports (such as income statements, balance

We investigate whether large language models (LLMs) can successfully perform financial statement analysis in a way similar to a professional human analyst. We provide standardized and anonymous financial statements to GPT4 and instruct the model to analyze them to determine the direction of firms’ f

The utilization of Large Language Models (LLMs) in financial trading has primarily been concentrated within the stock market, aiding in economic and financial decisions. Yet, the unique opportunities presented by the cryptocurrency market, noted for its on-chain data’s transparency and the critical

Training machine learning models for predicting stock market share prices is an active area of research since the automatization of trading such papers was available in real time. While most of the work in this field of research is done by training Neural networks based on past prices of stock share

Stock market forecasting has been a challenging part for many analysts and researchers. Trend analysis, statistical techniques, and movement indicators have traditionally been used to predict stock price movements, but text extraction has emerged as a promising method in recent years. The use of neu

Conventional algorithmic trading systems are grounded in deterministic heuristics or offline-trained statistical models that cannot adapt to the semantic complexity of rapidly shifting market regimes. This paper introduces AGENTICAITA, an agentic AI framework that replaces the traditional signal the

Housing selection is a high-stakes and largely irreversible decision problem. We study housing consultation as a decision-support interface for housing selection. Existing housing platforms and many LLM-based assistants often reduce this process to ranking or recommendation, resulting in opaque reas

This paper investigates whether large language models (LLMs) can generate reliable stock market predictions. We evaluate four state-of-the-art models - ChatGPT, Gemini, DeepSeek, and Perplexity - across three prompting strategies: a naive query, a structured approach, and chain-of-thought reasoning.

This paper investigates how large language models (LLMs) form and express investor risk profiles, a critical component of retail investment advising. We examine three LLMs (GPT, Gemini, and Llama) and assess their responses to a standardized risk questionnaire under varying prompts. In particular, w

Large Language Models (LLMs) are increasingly integrated into financial workflows, but evaluation practice has not kept up. Finance-specific biases can inflate performance, contaminate backtests, and make reported results useless for any deployment claim. We identify five recurring biases in financi

This paper introduces a methodology leveraging Large Language Models (LLMs) for sector-level portfolio allocation through systematic analysis of macroeconomic conditions and market sentiment. Our framework emphasizes top-down sector allocation by processing multiple data streams simultaneously, incl

Standard benchmarks fixate on how well large language model (LLM) agents perform in finance, yet say little about whether they are safe to deploy. We argue that accuracy metrics and return-based scores provide an illusion of reliability, overlooking vulnerabilities such as hallucinated facts, stale

This paper introduces a novel approach to financial risk analysis that does not rely on traditional price and market data, instead using market news to model assets as distributions over a metric space of risk factors. By representing asset returns as integrals over the scalar field of these risk fa

One type of bond with the most implicit government guarantee is municipal investment bonds. In recent years, there have been an increasing number of downgrades in the credit ratings of municipal bonds, which has led some people to question whether the implicit government guarantee may affect the obj

We introduce and make publicly available the NIFTY Financial News Headlines dataset, designed to facilitate and advance research in financial market forecasting using large language models (LLMs). This dataset comprises two distinct versions tailored for different modeling approaches: (i) NIFTY-LM,

We present a new financial domain large language model, InvestLM, tuned on LLaMA-65B (Touvron et al., 2023), using a carefully curated instruction dataset related to financial investment. Inspired by less-is-more-for-alignment (Zhou et al., 2023), we manually curate a small yet diverse instruction d

This paper investigates the potential improvement of the GPT-4 Language Learning Model (LLM) in comparison to BERT for modeling same-day daily stock price movements of Apple and Tesla in 2017, based on sentiment analysis of microblogging messages. We recorded daily adjusted closing prices and transl

This research investigates the growing trend of retail investors participating in certain stocks by organizing themselves on social media platforms, particularly Reddit. Previous studies have highlighted a notable association between Reddit activity and the volatility of affected stocks. This study

Accelerating climate-tech innovation in the formative stage of the technology life cycle is crucial to meeting climate policy goals. During this period, competing technologies are often undergoing major technical improvements within a nascent value chain. We analyze this formative stage for 14 clima

The intricate behavior patterns of financial markets are influenced by fundamental, technical, and psychological factors. During times of high volatility and regime shifts causes many traditional strategies like trend-following or mean-reversion to fail. This paper proposes a hybrid AI-based trading

This paper introduces an algorithmic framework for conducting systematic literature reviews (SLRs), designed to improve efficiency, reproducibility, and selection quality assessment in the literature review process. The proposed method integrates Natural Language Processing (NLP) techniques, cluster

The field of artificial intelligence (AI) agents is evolving rapidly, driven by the capabilities of Large Language Models (LLMs) to autonomously perform and refine tasks with human-like efficiency and adaptability. In this context, multi-agent collaboration has emerged as a promising approach, enabl

Large language model-based agents are becoming increasingly popular as a low-cost mechanism to provide personalized, conversational advice, and have demonstrated impressive capabilities in relatively simple scenarios, such as movie recommendations. But how do these agents perform in complex high-sta

In recent years, the application of generative artificial intelligence (GenAI) in financial analysis and investment decision-making has gained significant attention. However, most existing approaches rely on single-agent systems, which fail to fully utilize the collaborative potential of multiple AI

In recent years, there has been a growing trend of applying Reinforcement Learning (RL) in financial applications. This approach has shown great potential to solve decision-making tasks in finance. In this survey, we present a comprehensive study of the applications of RL in finance and conduct a se

Structural prediction has long been considered critical in RNA research, especially following the success of AlphaFold2 in protein studies, which has drawn significant attention to the field. While recent advances in machine learning and data accumulation have effectively addressed many biological t

Since the advent of generative artificial intelligence, every company and researcher has been rushing to develop their own generative models, whether commercial or not. Given the large number of users of these powerful new tools, there is currently no intrinsically verifiable way to explain from the

We study the role of contextual information in the online learning problem of brokerage between traders. In this sequential problem, at each time step, two traders arrive with secret valuations about an asset they wish to trade. The learner (a broker) suggests a trading (or brokerage) price based on

Forecasting cryptocurrencies as a financial issue is crucial as it provides investors with possible financial benefits. A small improvement in forecasting performance can lead to increased profitability; therefore, obtaining a realistic forecast is very important for investors. Successful forecastin

The objective of this research is to examine how sentiment analysis can be employed to generate trading signals for the Foreign Exchange (Forex) market. The author assessed sentiment in social media posts and news articles pertaining to the United States Dollar (USD) using a combination of methods:

This paper introduces “Shai” a 10B level large language model specifically designed for the asset management industry, built upon an open-source foundational model. With continuous pre-training and fine-tuning using a targeted corpus, Shai demonstrates enhanced performance in tasks relevant to its d

Cryptocurrencies and Bitcoin, in particular, are prone to wild swings resulting in frequent jumps in prices, making them historically popular for traders to speculate. A better understanding of these fluctuations can greatly benefit crypto investors by allowing them to make informed decisions. It is

Financial volatility obeys two fascinating empirical regularities that apply to various assets, on various markets, and on various time scales: it is fat-tailed (more precisely power-law distributed) and it tends to be clustered in time. Many interesting models have been proposed to account for thes

Trading is a highly competitive task that requires a combination of strategy, knowledge, and psychological fortitude. With the recent success of large language models(LLMs), it is appealing to apply the emerging intelligence of LLM agents in this competitive arena and understanding if they can outpe

Nostradamus, inspired by the French astrologer and reputed seer, is a detailed study exploring relations between environmental factors and changes in the stock market. In this paper, we analyze associative correlation and causation between environmental elements (including natural disasters, climate

The launch of $Trump coin ignited a wave in meme coin investment. Copy trading, as a strategy-agnostic approach that eliminates the need for deep trading knowledge, quickly gains widespread popularity in the meme coin market. However, copy trading is not a guarantee of profitability due to the preva

The proliferation of Large Language Models (LLMs) is challenged by hallucinations, critical failure modes where models generate non-factual, nonsensical or unfaithful text. This paper introduces Semantic Divergence Metrics (SDM), a novel lightweight framework for detecting Faithfulness Hallucination