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on Artificial Intelligence |
| By: | Fabian Dvorak; Regina Stumpf; Sebastian Fehrler; Urs Fischbacher |
| Abstract: | Generative artificial intelligence (AI) is poised to reshape the way individuals communicate and interact. While this form of AI has the potential to efficiently make numerous human decisions, there is limited understanding of how individuals respond to its use in social interaction. In particular, it remains unclear how individuals engage with algorithms when the interaction entails consequences for other people. Here, we report the results of a large-scale pre-registered online experiment (N = 3, 552) indicating diminished fairness, trust, trustworthiness, cooperation, and coordination by human players in economic twoplayer games, when the decision of the interaction partner is taken over by ChatGPT. On the contrary, we observe no adverse welfare effects when individuals are uncertain about whether they are interacting with a human or generative AI. Therefore, the promotion of AI transparency, often suggested as a solution to mitigate the negative impacts of generative AI on society, shows a detrimental effect on welfare in our study. Concurrently, participants frequently delegate decisions to ChatGPT, particularly when the AI's involvement is undisclosed, and individuals struggle to discern between AI and human decisions. |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2401.12773&r=ain |
| By: | Jeongbin Kim; Matthew Kovach; Kyu-Min Lee; Euncheol Shin; Hector Tzavellas |
| Abstract: | This paper explores the use of Large Language Models (LLMs) as decision aids, with a focus on their ability to learn preferences and provide personalized recommendations. To establish a baseline, we replicate standard economic experiments on choice under risk (Choi et al., 2007) with GPT, one of the most prominent LLMs, prompted to respond as (i) a human decision maker or (ii) a recommendation system for customers. With these baselines established, GPT is provided with a sample set of choices and prompted to make recommendations based on the provided data. From the data generated by GPT, we identify its (revealed) preferences and explore its ability to learn from data. Our analysis yields three results. First, GPT's choices are consistent with (expected) utility maximization theory. Second, GPT can align its recommendations with people's risk aversion, by recommending less risky portfolios to more risk-averse decision makers, highlighting GPT's potential as a personalized decision aid. Third, however, GPT demonstrates limited alignment when it comes to disappointment aversion. |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2401.07345&r=ain |
| By: | Jiang, Jennifer; Alizadeh, Armin; Adam, Martin; Wiener, Martin; Benlian, Alexander |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:dar:wpaper:141940&r=ain |
| By: | Lezhi Li; Ting-Yu Chang; Hai Wang |
| Abstract: | This report outlines a transformative initiative in the financial investment industry, where the conventional decision-making process, laden with labor-intensive tasks such as sifting through voluminous documents, is being reimagined. Leveraging language models, our experiments aim to automate information summarization and investment idea generation. We seek to evaluate the effectiveness of fine-tuning methods on a base model (Llama2) to achieve specific application-level goals, including providing insights into the impact of events on companies and sectors, understanding market condition relationships, generating investor-aligned investment ideas, and formatting results with stock recommendations and detailed explanations. Through state-of-the-art generative modeling techniques, the ultimate objective is to develop an AI agent prototype, liberating human investors from repetitive tasks and allowing a focus on high-level strategic thinking. The project encompasses a diverse corpus dataset, including research reports, investment memos, market news, and extensive time-series market data. We conducted three experiments applying unsupervised and supervised LoRA fine-tuning on the llama2_7b_hf_chat as the base model, as well as instruction fine-tuning on the GPT3.5 model. Statistical and human evaluations both show that the fine-tuned versions perform better in solving text modeling, summarization, reasoning, and finance domain questions, demonstrating a pivotal step towards enhancing decision-making processes in the financial domain. Code implementation for the project can be found on GitHub: https://github.com/Firenze11/finance_lm. |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2401.06164&r=ain |
| By: | Jin, Keyan; Zhong, Ziqi; Zhao, Elena Yifei |
| Abstract: | Digital marketing refers to the process of promoting, selling, and delivering products or services through online platforms and channels using the internet and electronic devices in a digital environment. Its aim is to attract and engage target audiences through various strategies and methods, driving brand promotion and sales growth. The primary objective of this scholarly study is to seamlessly integrate advanced big data analytics and artificial intelligence (AI) technology into the realm of digital marketing, thereby fostering the progression and optimization of sustainable digital marketing practices. First, the characteristics and applications of big data involving vast, diverse, and complex datasets are analyzed. Understanding their attributes and scope of application is essential. Subsequently, a comprehensive investigation into AI-driven learning mechanisms is conducted, culminating in the development of an AI random forest model (RFM) tailored for sustainable digital marketing. Subsequent to this, leveraging a real-world case study involving enterprise X, fundamental customer data is collected and subjected to meticulous analysis. The RFM model, ingeniously crafted in this study, is then deployed to prognosticate the anticipated count of prospective customers for said enterprise. The empirical findings spotlight a pronounced prevalence of university-affiliated individuals across diverse age cohorts. In terms of occupational distribution within the customer base, the categories of workers and educators emerge as dominant, constituting 41% and 31% of the demographic, respectively. Furthermore, the price distribution of patrons exhibits a skewed pattern, whereby the price bracket of 0–150 encompasses 17% of the population, whereas the range of 150–300 captures a notable 52%. These delineated price bands collectively constitute a substantial proportion, whereas the range exceeding 450 embodies a minority, accounting for less than 20%. Notably, the RFM model devised in this scholarly endeavor demonstrates a remarkable proficiency in accurately projecting forthcoming passenger volumes over a seven-day horizon, significantly surpassing the predictive capability of logistic regression. Evidently, the AI-driven RFM model proffered herein excels in the precise anticipation of target customer counts, thereby furnishing a pragmatic foundation for the intelligent evolution of sustainable digital marketing strategies, |
| Keywords: | artificial intelligence (AI); big data; random forest model (RFM); social media; sustainable digital marketing; technological innovation; AAM requested |
| JEL: | L81 |
| Date: | 2024–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:121402&r=ain |