Exploring the Behavioral Impact of ChatGPT on Investor Sentiment: Evidence from Stock and Cryptocurrency Markets in the Context of Sustainable Development

Abstract

This study examines the impact of ChatGPT’s release on investment dynamics, particularly focusing on investor sentiment in the stock and cryptocurrency markets. We begin with a bibliometric analysis to assess the current state of the literature in this area. Applying two benchmark sentiment indices the American Association of Individual Investors (AAII) Sentiment Index and the Crypto Fear and Greed Index (FGI) the research explores the behavioral changes prompted by this artificial intelligence technology. Additionally, we broaden the analysis to include investor sentiment in both financial and marketing contexts, considering key market indicators, brand perception, and engagement metrics. As ChatGPT reshapes investor interactions through AI-driven insights, we assess its influence on financial decision-making, corporate strategies, and its potential role in fostering sustainable development. For the methodology, we employed interrupted time series analysis (ITSA) to compare investor sentiment before and after the launch of ChatGPT, revealing significant changes in market behavior. The results indicate that ChatGPT played a catalytic role in enhancing investor optimism. Although the models suggest that ChatGPT accounts for a modest share of the variance in sentiment, its intervention remains statistically significant, underscoring its influence on investor psychology and its relevance for sustainability-oriented perspectives in finance. This paper contributes to the growing literature at the intersection of artificial intelligence and sustainable finance by providing a behavioral perspective on the psychological impact of AI in financial markets. The findings have important implications for market participants, policymakers, and future research on AI-induced financial behavior within the broader framework of sustainable development.

Keywords: ChatGPT, Generative Artificial Intelligence, Investor Sentiment, Behavioral Finance, Stock Market, Interrupted Time Series Analysis (ITSA)