AI Chatbots and Market Dynamics: Analyzing the Impact of AI on the Indian Stock Market

Title

AI Chatbots and Market Dynamics: Analyzing the Impact of AI on the Indian Stock Market

Creator

Saha, Swagatam; Chaudhary, Babita

Description

This study examines the potential of ChatGPT v4.0 for stock market analysis, particularly within the Indian stock market. The research uses prompt engineering to assess ChatGPT's ability to recommend stocks, construct portfolios, provide fundamental analysis, and understand price movements. The study combines sentiment analysis of news data with historical price data to forecast future price movements. Results demonstrate ChatGPT's effectiveness in identifying investment opportunities and providing insights for decision- making. The study also evaluates the accuracy of ChatGPTs predictions, finding an 88.89% accuracy rate based on news sentiment analysis and a 94% accuracy rate when integrating sentiment analysis with historical price data. Despite limitations, including constraints in handling large datasets, ChatGPT exhibits promise for supporting investors in the Indian stock market. Future research should focus on refining models and addressing ethical considerations to ensure responsible AI integration in finance. 2025 by IGI Global Scientific Publishing. All rights reserved.

Source

Behavioral Finance and AI Tools for Sustainability;pp.151-199

Date

01-01-2025

Publisher

IGI Global

Coverage

Saha S., Christ University, Bangalore, India; Chaudhary B., Christ University, Bangalore, India

Rights

Restricted Access; Hardcopy may be available in the library

Relation

ISBN: 979-836939686-5; 979-836939684-1;

Format

online

Language

English

Type

Book chapter

Identifier

https://doi.org/10.4018/979-8-3693-9684-1.ch007

https://www.scopus.com/pages/publications/105021736031?origin=resultslist