Can ChatGPT predict stock prices? Evaluating artificial intelligence-driven financial forecasting and risk management

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Abstract

The use of artificial intelligence (AI) in financial forecasting has become increasingly significant in finance and accounting, offering improved precision in predicting key financial indicators such as revenue and net income. The purpose of this study is to explore the relationship between AI models’ benchmark scores and their predictive accuracy, addressing a gap in the literature regarding comprehensive evaluations of AI performance across financial metrics. Recent research highlights AI’s potential to outperform traditional statistical methods, with deep learning and ensemble models demonstrating notable accuracy in predicting stock prices and financial ratios (Khattak et al., 2023; Cao, 2021). By analyzing the 2020–2022 financial records of ten publicly listed corporations this research implements zero-shot prompt approaches for forecasting 2023 revenue and net income. Research findings demonstrate AI models can effectively boost financial prediction accuracy and such accuracy remains essential for business choices and risk protocols. Practical steps for AI reliability enhancement focus on using top-quality data with transparency and methods to control algorithmic biases. The research is relevant because it adds to AI finance understanding in academia while generating practical applications that guide industry professionals toward future exploration of financial AI applications.

Keywords: Artificial Intelligence, Financial Forecasting, Predictive Analytics, Benchmarking, Revenue Prediction, Net Income Prediction

Authors’ individual contribution: The Author is responsible for all the contributions to the paper according to CRediT (Contributor Roles Taxonomy) standards.

Declaration of conflicting interests: The Author declares that there is no conflict of interest.

JEL Classification: C45, G17, C53, M41

Received: 12.11.2024
Revised: 29.01.2025; 03.03.2025; 07.05.2025
Accepted: 09.06.2025
Published online: 12.06.2025

How to cite this paper: Akpan, M. (2025). Can ChatGPT predict stock prices? Evaluating artificial intelligence-driven financial forecasting and risk management. Risk Governance & Control: Financial Markets & Institutions, 15(2), 148–160. https://doi.org/10.22495/rgcv15i2p13