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.