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Thorsten Hens

Thorsten Hens is a Swiss Finance Institute Professor of Financial Economics at the University of Zurich and Adjunct Professor of Finance at University of Lucerne, Switzerland, as well as at the Norwegian School of Economics, NHH, in Bergen. His main research areas are behavioral finance with applications in wealth management and evolutionary finance with applications in asset management. Dr. Hens has published more than eighty peer-reviewed journal articles and is the co-author of more than ten books.

How good are LLMs in investor risk profiling?

As the financial industry increasingly looks to large language models for new solutions, a study asks how OpenAI’s ChatGPT-4 and Google’s Bard compare with Swiss bank experts in determining investors’ risk profiles. The results: relying on the AI-based evaluations does not appear to make a significant difference to the bottom line. However, the LLMs are not good at explaining the reasoning behind the risk profiles.