Technology in Society 76 (2024) 102454

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Technology in Society
journal homepage: www.elsevier.com/locate/techsoc

Nexus between Chat GPT usage dimensions and investment decisions

making in Pakistan: Moderating role of financial literacy
Rafid Ullah *, Hishamuddin Bin Ismail , Mohammad Tariqul Islam Khan , Ali Zeb
Faculty of Business, Multi Media University, Malaysia

A R T I C L E I N F O A B S T R A C T

Keywords: This study’s primary goal is to investigate and gain better knowledge of the relationship between ChatGPT usage
ChatGPT dimensions such as analyzing data, managing risk, optimizing portfolios, forecasting market trends, and con­
Analyzing data ducting sentiment analysis and investment decisions of investors in the Pakistan stock market, as well as the
Managing risk
moderating role of financial literacy. The sample for this study included individual stock market investors in
Optimizing portfolios
Forecasting market trends
Pakistan. Using a self-administered questionnaire and a cross-sectional design, a non-probability convenience
Conducting sentiment analysis sampling technique followed by snowball techniques was used to collect data from 388 active and potential
Financial literacy and investment decision individual investors. The study’s findings showed that ChatGPT usage dimensions have a positive and significant
making impact on investment decision making. Furthermore, financial literacy is found to moderate the relationship
between optimizing portfolios, forecasting market trends, and investment decision making. The study’s findings
outlined practical implications for the researcher, financial advisors, individual investors, governmental
decision-makers, policymakers, and stock market authorities who are interested in leveraging the benefits of
artificial intelligence and machine learning in investment decision making in the context of emerging economies
like Pakistan.

1. Introduction of the study
Artificial intelligence (AI) has been making waves in various in­
dustries, including finance. The financial sector has undergone signifi­
cant changes in recent years with the advent of new technologies and the
increasing reliance on data-driven decision making processes (Chen and
Peng, 2021). In this context, natural language processing (NLP) and
machine learning (ML) models have emerged as powerful tools for
financial analysis and decision making [1]. One such model is ChatGPT,
a large language model developed by OpenAI that has been trained on
massive amounts of data to generate human-like responses to text-based
inputs [2]. ChatGPT can be used for a range of financial applications [3],
including analyzing data, managing risk, optimizing portfolios, fore­
casting market trends, and conducting sentiment analysis. The model’s
ability to process vast amounts of data quickly and accurately makes it
particularly useful in situations where speed and accuracy are essential,
such as high-frequency trading and risk management [4].
Over the past 15 years, the landscape of financial analysis and in­
vestment decision making has undergone a transformative evolution,
largely propelled by advancements in artificial intelligence (AI), ma­
chine learning (ML), natural language processing (NLP), and innovative
technologies like ChatGPT [5]. This period has witnessed a paradigm
shift in how financial professionals approach data analysis, risk assess­
ment, and decision making processes [5–7]. AI, with its ability to mimic
human intelligence, has become a cornerstone in financial analysis. ML
algorithms, powered by vast datasets, have proven invaluable in iden­
tifying patterns, predicting market trends, and optimizing investment
strategies [6]. NLP, on the other hand, has revolutionized the extraction
of insights from unstructured data, enabling financial analysts to derive
meaningful information from sources like news articles, social media,
and financial reports [7].
The emergence of ChatGPT, a state-of-the-art language model
developed by OpenAI, represents a significant leap forward in natural
language understanding and generation. Its capacity to comprehend
context, answer queries, and engage in coherent conversations has
opened new avenues for incorporating AI into financial decision making
processes [5]. In the financial sector, these technologies have been
harnessed to enhance risk management, portfolio optimization, and

* Corresponding author.
E-mail addresses: rafidktk@gmail.com (R. Ullah), hisham@mmu.edu.my (H.B. Ismail), tariqul.islam@mmu.edu.my (M.T. Islam Khan), ali.zeb@kiu.edu.pk
(A. Zeb).

https://doi.org/10.1016/j.techsoc.2024.102454
Received 8 June 2023; Received in revised form 28 December 2023; Accepted 1 January 2024
Available online 2 January 2024
0160-791X/© 2024 Elsevier Ltd. All rights reserved.
R. Ullah et al.
sentiment analysis. The ability of AI and ML algorithms to process vast
amounts of financial data in real-time has empowered investors with
timely and accurate insights, facilitating more informed decision mak­
ing. The integration of NLP and ChatGPT has further elevated the ca­
pabilities of financial analysts by enabling them to interpret textual
information at scale [8]. This includes sentiment analysis of market
news, social media discussions, and company reports, providing a ho­
listic view of market dynamics and sentiment-driven fluctuations [9].
[10] provide an overview of the opportunities and risks associated
with the intersection of artificial intelligence (AI) and financial tech­
nology (fintech) in banking, investments, and microfinance. The authors
argue that AI can help financial institutions improve the customer
experience, increase efficiency, and reduce risk [11]. provide a
comprehensive survey of the literature on the application of artificial
intelligence (AI) techniques in finance and financial markets. It covers
various AI techniques, including machine learning, neural networks,
genetic algorithms, fuzzy logic, and swarm intelligence. The authors
analyze the use of these techniques in different financial applications,
such as stock forecasting, portfolio optimization, risk management,
fraud detection, and algorithmic trading.
[12] provide a comprehensive review of the various applications of
artificial intelligence (AI) in stock market trading. It discusses the use of
AI for tasks such as stock selection, portfolio optimization, and risk
management. The article also covers the different approaches to AI in
stock market trading, including machine learning, deep learning, and
natural language processing. It concludes by highlighting the potential
benefits and challenges of using AI in this field [13]. present empirical
evidence on how artificial intelligence (AI) analysts impact individual
investor activities in mutual fund investments. The study found that
mutual funds that employ AI analysts tend to have higher fund flows and
better performance compared to those that do not. Additionally, the
presence of AI analysts can also reduce the sensitivity of fund flows to
past performance, suggesting that AI analysts provide more stable and
reliable information to investors. Overall, the results suggest that AI
analysts have a positive impact on individual investor activities in
mutual fund investments.
The [1] discusses the increasing role of artificial intelligence (AI) in
investment decision making processes and its applications in the Turkish
finance industry. It highlights how AI technologies, such as machine
learning and natural language processing, can help investors make
informed decisions by analyzing vast amounts of data and identifying
patterns. The article also mentions various AI applications in the Turkish
finance industry, including risk assessment, fraud detection, and port­
folio management. Overall, the article suggests that AI can revolutionize
the investment decision making process and improve the efficiency of
the finance industry in Turkey [14]. discuss the current and future ap­
plications of Natural Language Processing (NLP) in finance. NLP is being
used to automate various processes in the financial sector, including
data analysis, customer service, and fraud detection. The technology is
expected to become even more prevalent in the future, as it can help
financial institutions better understand customer sentiment and improve
their overall operations.
The field of investment decision making has become highly dynamic
in present times. The process of making investment decisions is a critical
one that depends on various factors unique to each individual, such as
the type of investment they want to make, the location, the timing, and
the amount of money they are willing to invest. In cases where corpo­
rations are involved, the decision making process involves determining
how much capital will be allocated for investment opportunities and
when, where, and how it will be invested [15]. Successful investment
decisions are highly dependent on an individual’s level of financial lit­
eracy. Investment planning involves developing investment strategies,
designing a systematic investment plan, and creating an asset allocation
strategy [16]. When making investment decisions, investors typically
use essential and technical analysis as well as their own judgment [17].
The investors’ decisions are systematically influenced by market factors
2
Technology in Society 76 (2024) 102454
and the information structure available to them [18].
One of the significant benefits of using AI in finance is its ability to
analyze large amounts of data quickly and accurately. This is particu­
larly important in investment decision making, where analysts need to
process vast amounts of data to identify potential investments [1].
AI-powered chatbots such as ChatGPT can quickly analyze data and
provide insights to investors, helping them make informed decisions [4].
The use of AI in finance can also help companies manage risks better by
identifying potential risks and providing recommendations to mitigate
them [19]. AI can also help optimize investment portfolios by using
algorithms to analyze the performance of various investments and
identify opportunities for diversification [1]. ChatGPT can help in­
vestors identify the best portfolio mix for their investment goals.
AI-powered chatbots can also forecast market trends by analyzing his­
torical data and identifying patterns, providing investors with insights
into market movements [20]. Moreover, ChatGPT’s natural language
processing capabilities make it a valuable tool for sentiment analysis
[21], which involves analyzing text-based data to determine the overall
sentiment of a particular market or asset. By processing news articles,
social media posts, and other text-based data, ChatGPT can provide
valuable insights into market sentiment, allowing investors to make
more informed decisions [21].
Financial literacy encompasses the ability of an individual to make
effective decisions regarding the management and use of their money
[22]. [23] assert that an investor’s financial literacy is the determining
factor in their ability to comprehend the workings of money and maxi­
mize their profits through investments. People with financial literacy
possess a better knowledge of financial markets and products, enabling
them to accurately evaluate their financial resources [24]. However, the
lack of financial literacy is a worldwide issue [25], and its underlying
knowledge is often less than desirable. According to Ref. [26]; investors
with higher levels of education and experience have greater financial
literacy, and financial literacy plays a vital role in improving and pro­
moting sound financial decisions [27]. Overall, financial literacy is an
essential skill for individuals to thrive in modern society and is closely
related to an individual’s financial decision making [28].
In addition to its technical capabilities, the effective use of ChatGPT
in financial decision making requires a strong foundation in financial
literacy. This includes understanding financial concepts and terminol­
ogy, as well as having a deep understanding of market dynamics and
economic trends [3]. Financial literacy is essential when using
AI-powered chatbots for investment decision making and investors must
understand the information provided by the chatbots and be able to
interpret it accurately. The use of AI in finance does not replace human
expertise [29], but rather enhances it [3]. The successful implementa­
tion of ChatGPT in the financial industry depends on the financial lit­
eracy of the end-users [3].
Understanding the intricate algorithms and methodologies behind AI
recommendations requires a certain level of financial acumen. Investors
armed with a solid foundation in financial literacy are better equipped to
discern the nuances of AI-generated insights, enabling them to make
more informed decisions [30]. This synergy between financial literacy
and AI recommendations is essential for optimizing investment out­
comes. AI recommendations, fueled by vast datasets and complex al­
gorithms, have the potential to unlock unprecedented insights and
identify investment opportunities that may elude traditional analysis.
However, the effectiveness of these recommendations is contingent
upon the investor’s ability to interpret the underlying financial metrics,
risk assessments, and market dynamics. A financially literate investor is
not merely a recipient of AI suggestions but an active participant in the
decision making process, leveraging their knowledge to validate, refine,
and implement AI-driven strategies [30].
The primary focus of this study is to examine how the various di­
mensions of ChatGPT usage are linked to investment decision making.
Thus, this study seeks to address a specific research gap in the existing
literature. It highlights that there is limited knowledge or understanding
R. Ullah et al.
regarding how ChatGPT, a conversational AI model, influences invest­
ment decisions making among individual investors in the stock market
of Pakistan. However, further studies reveal another layer to the study,
suggesting that financial literacy plays a crucial role in investment de­
cisions making and that the impact of financial literacy should not be
overlooked. It acknowledges the importance of considering financial
literacy when exploring the relationship between ChatGPT usage di­
mensions and investment decision making. Consequently, the study goes
beyond a simple examination of the link between ChatGPT usage di­
mensions and investment decisions making by incorporating the
moderating role of financial literacy. It aims to investigate how the
impact of ChatGPT usage dimensions on investment decisions making
might be moderated by the financial literacy of individual investors in
Pakistan. This study sets clear research agendas by focusing on the
relationship between ChatGPT usage dimensions and investment deci­
sion making and also moderating role of financial literacy of the in­
dividual’s investors in Pakistan.
2. Literature review
Investing in financial markets has become increasingly complex and
challenging due to the high volume of data generated and the speed at
which market conditions change. The advancements in technology have
enabled investors to analyze market trends, forecast future prices, and
manage risk more efficiently [31]. However, these tools can only be
effective if the investors possess the necessary financial literacy to un­
derstand and interpret the data [3,29]. This literature review aims to
analyze the role of ChatGPT (Generative Pre-Trained Transformer) in
investment decision making and how it can be used to analyze data,
manage risk, optimize portfolios, forecast market trends, and conduct
sentiment analysis. However, the article argues that the effectiveness of
ChatGPT is dependent on the investor’s financial literacy, which acts as
a moderator between ChatGPT usage and investment decision making.
2.1. ChatGPT usage dimensions and investment decision making
ChatGPT is a state-of-the-art language model that has been trained
on a large corpus of text data. It uses deep learning algorithms to analyze
and interpret natural language and generate text-based responses [32].
ChatGPT has several usage dimensions that can assist in financial
analysis and investment decision making. But there is no research
available on the impact of ChatGPT usage on investment decision
making. However, several studies have examined the relationship be­
tween technological advancements and investment decision making [1].
[33] explore the various ways in which artificial intelligence (AI) can be
applied to financial management decision making processes. It examines
the use of AI in areas such as credit risk analysis, fraud detection,
portfolio optimization, and customer service. The article concludes that
AI can significantly improve financial decision making processes, but
that there are also challenges that need to be addressed, such as the need
for large amounts of quality data and concerns around algorithmic bias.
[34] highlight the potential impact of AI on various aspects of the
industry, including risk management, investment decision making, and
customer service. The article suggests that firms in the industry should
focus on building AI-based investment platforms, developing AI-driven
investment strategies, and leveraging AI to improve customer engage­
ment and experience [31]. discuss the use of artificial intelligence (AI) in
the financial industry, which has become increasingly popular in recent
years. AI has been applied in various aspects of the industry, including
fraud detection, risk management, customer service, and trading. The
article explores the different types of AI, such as machine learning and
natural language processing, and how they are being used in the
financial sector.
The [35] discusses BlackRock’s move towards integrating artificial
intelligence (AI) into their financial advisory services through their
“Robo-Advisor 4.0.” This new system will replace human discretion in
3
Technology in Society 76 (2024) 102454
decision making processes and rely on algorithms and data analysis to
make investment decisions. The [29] explores the impact of
robo-advisors on investment decision making and the role of behavioral
finance in an era of artificial intelligence (AI). The authors conducted a
longitudinal case study using data from a leading robo-advisor platform
and found that robo-advisors have been successful in reducing behav­
ioral biases and improving investment performance. However, they also
noted that there are limitations to relying solely on AI, and human
intervention is still necessary to account for complex and dynamic
market conditions. The study highlights the importance of a collabora­
tive approach that combines the strengths of AI and human expertise in
investment decision making.
[36] discuss the use of forecasting and Markowitz-based decision
making approaches to make investment decisions in the stock market.
The forecasting approach involves using historical data to predict future
trends, while the Markowitz approach involves analyzing risk and return
to build a diversified portfolio. The article highlights the importance of
using both approaches in conjunction to make informed investment
decisions that balance risk and return. It also emphasizes the need for
continuous monitoring and adjustment of the portfolio to ensure its
alignment with changing market conditions.
[19] discuss the application of deep reinforcement learning (DRL) in
finance. DRL is a type of machine learning that involves training an
agent to make decisions based on rewards and punishments received
from its environment. The article explores the advantages and chal­
lenges of applying DRL in finance and discusses various use cases such as
portfolio optimization, algorithmic trading, and risk management. The
article also provides an overview of the different types of DRL algo­
rithms and their suitability for different finance applications.
[37] compare the effectiveness of artificial neural networks (ANN)
and linear regression (LR) models in predicting stock prices on the
Tehran Stock Exchange. Specific variables were used for the prediction
models, and the results showed that the ANN model outperformed the
LR model in terms of accuracy and prediction error. The study suggests
that the ANN model is a more suitable approach for predicting stock
prices in the Tehran Stock Exchange [20]. present an empirical study of
various machine learning algorithms for stock daily trading strategies.
The authors used four popular machine learning algorithms, namely
Random Forest, Support Vector Machine, K-Nearest Neighbors, and
Gradient Boosting, to predict stock prices and compare their perfor­
mance. The study was conducted using data from the NASDAQ-100
index. The results showed that the Random Forest algorithm out­
performed the other algorithms in terms of accuracy and profitability.
[38] discuss the potential of machine learning (ML) algorithms in
predicting stock market trends and making investment decisions. It
highlights the importance of having large and reliable datasets for
training ML models and the need for continuous updating and refining of
the algorithms to adapt to changing market conditions. The article also
touches on the ethical implications of using AI in stock market predic­
tion and the need for transparency and accountability in decision
making processes. Overall, the article concludes that AI and ML can be
powerful tools for investors, but they should be used with caution and in
combination with human expertise and judgement.
[21] discuss how machine learning algorithms are being used to
analyze sentiment in news articles related to COVID-19 and its impact on
the stock market. By analyzing language and context, these algorithms
can determine whether a news article is positive, negative, or neutral
and how it might affect the stock market. Researchers found that the
sentiment of news articles related to COVID-19 was strongly linked to
stock market reactions. Positive news was associated with higher stock
prices, while negative news was associated with lower stock prices. This
research highlights the potential for machine learning algorithms to
provide valuable insights into market trends and inform investment
decisions.
The [39] study results suggest that Twitter sentiment has a signifi­
cant impact on the stock market during pandemics, with negative
R. Ullah et al. Technology in Society 76 (2024) 102454

sentiment leading to a decline in stock prices. Additionally, the study of sentiment analysis [39]. ChatGPT can be utilized for sentiment
found that the impact of Twitter sentiment was stronger during the analysis by analyzing social media data, news articles, and other sources
COVID-19 pandemic compared to the H1N1 pandemic [40]. discussed of information to identify public sentiment towards a company or a
that, as a language model trained by OpenAI, ChatGPT AI has impacted product. ChatGPT can identify positive or negative sentiment and pro­
several business sectors, including healthcare, finance, and customer vide insights into how it may impact investments. This information can
service. In finance, it has helped financial institutions automate tasks help investors make decisions about whether to invest in a particular
and improve fraud detection [41]. present a systematic survey of the asset [21]. As we delve into the hypothesis formulation, it becomes
practice, backtesting, and applications of deep learning in the stock evident that assessing the significance of conducting sentiment analysis
market. It covers various deep learning techniques and their applica­ in individual investment decision making within the stock market is a
tions, including stock price prediction, portfolio optimization, and pertinent avenue for exploration. Therefore, the hypothesis formulated
trading signal generation. for this study is as follows:
Data analysis is a critical aspect of investment decision making
H5. Conducting sentiment analysis is significantly related to individ­
processes [1]. ChatGPT can analyze large amounts of financial data and
ual investment decision making in the stock market.
extract meaningful insights from it. ChatGPT can identify patterns and
trends in the data that may not be apparent to human analysts [14]. For
2.2. Financial literacy and investment decision making
example, ChatGPT can analyze the financial statements of companies
and identify potential risks and opportunities. This can help investors
Financial literacy refers to the ability to comprehend and apply
make informed decisions about their investments [1]. The current study
financial concepts and skills for making sound investment decisions
seeks to investigate the relationship between analyzing data and indi­
[23]. In other words, it involves the capacity to determine which in­
vidual investment decision making in the stock market. Thus, the hy­
vestment is better based on available information [42]. This knowledge
pothesis for this research is formulated as follows:
is crucial in making informed investment decisions [43], as it equips
H1. Analyzing data is significantly related to individual investment individuals with the necessary skills, information, and education to
decision making in the stock market. make wise choices. Financial literacy is a key factor in investment de­
cision making, particularly when investors use financial information to
Managing risks is a crucial element within the framework of making
guide their saving, investment, and borrowing behavior. It also explains
investment decisions. ChatGPT can be employed to manage risk by
why investment decisions can vary among investors [44]. Being finan­
predicting the likelihood of an event occurring based on historical data.
cially literate provides individuals with the expertise to analyze and
ChatGPT can also identify correlations between different types of risks
execute financial activities such as investing, saving, and identifying
and provide insights into how they may interact with each other [19].
investment opportunities [45].
This information can help investors make decisions about how to
Furthermore, possessing knowledge of financial products, concepts,
manage their portfolios [1,11]. In this context, the formulation of a
and money matters reflects sound financial decision making ability and
hypothesis becomes imperative to ascertain the significant relationship
instills the confidence to make the right decisions at the right time [46].
between managing risk and individual investment decision making in
In the present fast-paced global community, it is crucial for every person
the dynamic realm of the stock market. Therefore, the following hy­
who is exposed to complex financial situations to have a good under­
pothesis is posited:
standing of financial literacy. These skills include the ability to
H2. Managing risk is significantly related to individual investment comprehend and navigate the workings of money, manage income and
decision making in the stock market. expenses, make smart investments, manage financial risks efficiently,
and prevent financial hardship. Financial literacy is a fundamental skill
Portfolio optimization plays an integral role in the decision making
that enables individuals and organizations to make well-informed in­
processes related to investments. ChatGPT can optimize portfolios by
vestment decisions [47].
analyzing a vast amount of financial data and identifying the best in­
A lack of financial literacy can cause investors to misinterpret data,
vestment opportunities. ChatGPT can consider various factors such as
leading to poor decisions when buying or selling shares in the stock
risk, return, and diversification while optimizing portfolios [19,41]. It
market. This can result in missed opportunities and liquidity problems.
can also be used to identify undervalued assets that may be good in­
Individuals with lower financial literacy are more likely to experience
vestment opportunities [1,11]. Building upon this foundation, the
self-exclusion and financial exclusion, while those with higher financial
following hypothesis is formulated to investigate the relationship be­
literacy are more likely to achieve financial stability. According to
tween optimizing portfolios, as facilitated by ChatGPT, and individual
Ref. [48]; investors without an acceptable level of financial literacy
decision making within the dynamic context of the stock market.
often misunderstand data and numbers and may make financial de­
H3. Optimizing portfolios is significantly related to individual invest­ cisions based on subjective beliefs rather than objective analysis.
ment decision making in the stock market. Empirical studies show that financial literacy is positively related to
investment decisions [49] and influences the consideration of different
Forecasting market trends is a pivotal component of guiding de­
risks in making investment decisions [16].
cisions pertaining to investment strategies [20]. ChatGPT can analyze
Financial literacy is the ability to make informed and effective de­
market data and make predictions about future trends in the financial
cisions about money management [50]. [51] view financial literacy as
markets [41]. ChatGPT can identify potential trends and provide in­
the ability to process financial information and make informed decisions
sights into how they may impact investments [19]. This information can
about financial planning, pensions, wealth accumulation, and debt [52].
help investors make informed decisions about when to buy or sell assets
Poor financial decision making, practice behavior, and less wealth
[11,20]. The present study aims to contribute to the discourse by
accumulation [45,53,54], as well as inadequate portfolio diversification,
formulating a hypothesis that specifically investigates the relationship
stock participation, and saving behavior [55–58]. In light of the existing
between forecasting market trends, as facilitated by ChatGPT, and in­
literature and the recognized significance of financial literacy in in­
dividual investment decision making in the stock market. Therefore, in
vestment decision making, a hypothesis emerges:
line with the reviewed literature, the following hypothesis is proposed:
H6. Financial literacy significantly affects individual investment de­
H4. Forecasting market trends is significantly related to individual
cision making.
investment decision making in the stock market.
Making decisions about investments requires careful consideration

4
R. Ullah et al. Technology in Society 76 (2024) 102454

2.3. Moderating role of financial literacy conducting sentiment analysis and investment decision making.
The relationship between ChatGPT usage dimensions, as mentioned
Numerous studies have demonstrated the global recognition of
in the above Fig. 1, can complement and enhance investment decision
financial literacy as a critical element of economic and financial stabil­
making. ChatGPT can assist in analyzing large volumes of data by
ity. The accessibility of financial avenues such as leasing, mortgages,
quickly extracting relevant information, identifying patterns, and
business loans, and credit cards has enabled individuals to capitalize on
providing insights [66]. ChatGPT can aid in data interpretation, helping
these opportunities. However, the rational utilization of funds is crucial
investors make more informed decisions. There is a positive relationship
for financial development to achieve an optimal outcome [52]. Lack of
between analyzing data and investment decision making. Using
knowledge about finance creates confusion and ambiguity, leading to
ChatGPT for risk management creates a positive relationship. The
poor decision making [59]. Financial literacy is therefore essential for
technology can contribute to risk identification, assessment, and miti­
effectively managing financial resources. Investors with inadequate
gation by processing vast amounts of information and highlighting po­
financial literacy tend to make irrational or unfavorable investment
tential risks. ChatGPT can assist in portfolio optimization by providing
decisions [60], and are more likely to acquire high levels of debt [61].
data-driven insights, helping investors make more strategic decisions.
These investors tend to hold an undiversified portfolio and avoid
ChatGPT can be used to analyze historical data, market trends, and
investing in the stock market [62].
portfolio performance, contributing positively to optimization efforts
Policymakers consider financial education as a remedy for poor in­
[67]. There is an inherent positive relationship. The use of ChatGPT can
vestment decisions among individuals with low financial literacy.
improve forecasting accuracy by processing and analyzing vast amounts
Financially literate investors make investment decisions using proper
of data. ChatGPT can positively impact market trend forecasting [68] by
techniques at the right time [63], and focus only on relevant information
identifying patterns, performing sentiment analysis, and processing
[64]. Such investors are better equipped to minimize the risk factor,
real-time data. ChatGPT can be employed for sentiment analysis to
whereas those with less knowledge are prone to confusion and
gauge market sentiment and investor behavior. ChatGPT can help in­
risk-taking [57]. Therefore, financial literacy plays a crucial role in
vestors understand and analyze market sentiment [69], which is crucial
enhancing investors’ capacity to make sound investment decisions [65].
for decision making. In summary, the relationship between ChatGPT
[3] discuss how OpenAI’s language model, ChatGPT, can democratize
usage dimensions and investment decision making is generally positive,
financial knowledge by providing accessible and easy-to-understand
as ChatGPT can provide valuable support in data analysis, risk man­
information to a wider audience. With its natural language processing
agement, portfolio optimization, market trend forecasting, and senti­
capabilities, ChatGPT can provide personalized financial advice and
ment analysis.
recommendations to users. This can help bridge the knowledge gap and
empower individuals to make informed financial decisions.
3. Methodology
The effective utilization of ChatGPT’s various usage dimensions re­
quires a certain level of financial literacy. So, in the context of ChatGPT
3.1. Sample and data collection
and investment decision making, financial literacy plays a crucial role in
moderating the usage of ChatGPT in financial decision making. In­
The study’s participant pool comprises individual investors from
dividuals with high levels of financial literacy are more likely to use
Pakistan. The examination of the Pakistani market is undertaken for
ChatGPT effectively in financial decision making. They can understand
various reasons. Pakistani investors often exhibit a relatively higher risk
the output generated by ChatGPT and make informed investment de­
appetite compared to investors in some other countries [70]. This can be
cisions based on that output. In contrast, individuals with low levels of
attributed to factors such as a younger demographic and a growing
financial literacy may misinterpret the output generated by ChatGPT
middle class. There is often a preference for speculative investments,
and make uninformed investment decisions. Investors who are finan­
such as stocks of small-cap companies or sectors with high growth po­
cially literate are more likely to understand the insights provided by
tential. Cryptocurrency investments have also gained popularity among
ChatGPT and use that information to make informed decisions.
some Pakistani investors seeking higher returns [71]. In contrast to more
Having established the critical role of financial literacy in shaping
developed markets, Pakistani investors may rely more on informal
investment decisions, it is imperative to explore how this financial lit­
sources of information for investment decisions. Social networks, local
eracy may interact with specific usage dimensions of ChatGPT and in­
market rumors, and tips from peers are often considered in the decision
vestment decision making. Transitioning from the literature review to
making process [72].
hypothesis formulation, the focus shifts from the general importance of
The range of investment products available to Pakistani investors
financial literacy to its potential moderating influence on various as­
may be more limited compared to investors in more developed markets
pects of ChatGPT usage dimensions and investment decision making.
[73]). While the stock market is active, other financial instruments such
The following hypotheses propose that financial literacy serves as a key
as exchange-traded funds (ETFs) and certain derivatives may not be as
moderator in the relationship between the usage dimensions of ChatGPT
widely used or accessible. The regulatory environment in Pakistan can
and investment decision making. These hypotheses aim to delve into the
influence investment behavior. Changes in tax policies, market regula­
nuanced ways in which an individual’s financial literacy may influence
tions, and economic conditions can impact investor sentiment and
their ability to effectively leverage ChatGPT in the context of investment
choices [74]. With the increasing penetration of smartphones and
decision making.
internet access, there has been a growing trend of online trading and
H7. Financial literacy moderates the relationship between analyzing investment platforms in Pakistan [75]. This has allowed investors to
data and investment decision making. access global markets and diversified investment options more easily.
Individual investors in the Pakistan stock market come from diverse
H8. Financial literacy moderates the relationship between managing
financial backgrounds. Some may have substantial financial resources,
risk and investment decision making.
allowing them to make larger investments, while others may have more
H9. Financial literacy moderates the relationship between optimizing limited funds, restricting the size of their investments. Experienced in­
portfolios and investment decision making. vestors who have a deep understanding of the market and individual
stocks may be more confident in making larger investments. The level of
H10. Financial literacy moderates the relationship between fore­
market participation can influence investment size. Some investors may
casting market trends and investment decision making.
actively trade in the market, leading to more frequent and potentially
H11. Financial literacy moderates the relationship between larger transactions. Others may adopt a buy-and-hold strategy with less

5
R. Ullah et al. Technology in Society 76 (2024) 102454

Fig. 1. Research framework.

Source: Prepared by the researchers from the literature review and research gap.

Fig. 2. Measurement model.

Source: Outputs of Smart PLS software considering the measurement model

6
R. Ullah et al.
frequent trading and smaller investment sizes.
In this study, data was collected from individual investors in the
stock market of Pakistan through a standardized survey design. Prior to
the distribution of questionnaires, a pilot study was conducted. As most
investors were unaware of ChatGPT and its application in investment
decision making, the researcher utilized a convenience sampling
method, followed by a snowball sampling technique. The researcher
prepared a list of active traders in the stock market with the help of
brokerage firms’ managers and contacted them personally or by tele­
phone to identify further potential respondents to obtain an appropriate
sample size. During the data collection process, due attention has been
given to the collection of data to cover the entire Pakistan Stock Ex­
change. We used the method proposed by Ref. [76] to select a feasible
sample size. A structured questionnaire was used to collect data, and a
total of 560 respondents were contacted, with over 500 questionnaires
distributed. Of these, 447 filled-out questionnaires were received, with
388 fully completed questionnaires used for analysis and 59 discarded
due to incomplete information. The response rate was 77.60 %.
3.2. Measurement of construct
The study used questionnaires to collect data from the population,
and respondents answered on a five-point Likert scale, where one (1)
means “strongly disagree” and five (5) means “strongly agree”. Likert
scales allow participants to express their subjective opinions and per­
ceptions. This is particularly important in surveys related to technology
usage (such as ChatGPT) and finance, where respondents may have
varying levels of expertise. In surveys related to financial literacy and
investment decision making, these scales enable participants to convey
their confidence levels and perspectives. Financial decision making is
influenced by behavioral aspects such as risk tolerance, emotions, and
biases. Likert scales can capture these subjective elements, offering in­
sights into how individuals perceive and respond to various financial
scenarios. Particularly useful for exploratory research, Likert scales aid
in uncovering new insights and hypotheses, essential when studying
dimensions lacking established objective metrics or exploring the
human element in decision making processes.
The questionnaire was validated for face and content validity by a
group of co-authors, Ph.D. faculty members, and stock market investors
with MBA degrees, as recommended by Ref. [77] and adopted by
Ref. [78]. Financial literacy was measured using five items, two of which
were adapted from Ref. [22] also used by Ref. [79] and three items from
Van et al. (2011) also used by Ref. [80] and modified to meet the current
study’s requirements. The study also measured investment decision
making using five items adapted from Ref. [63] also used by Ref. [81]
and modified to meet the study’s specific requirements. The items and
their sources are listed in the appendix. Pilot testing was conducted on a
sample size of 50, and Cronbach’s alpha value was calculated to be
above 0.6 to ensure construct reliability. Items with less than 0.6 factor
loading were removed from the final analysis [82], including one item
from analyzing data, two from managing risk, two from optimizing
portfolios, and two from forecasting market trends.
3.3. Data analysis
According to Ref. [83]; several assumptions need to be satisfied
before conducting multivariate analysis, including checking for common
method bias, multicollinearity, and normality of data. In the current
investigation, responses on independent, dependent, and moderating
variables were gathered simultaneously from the same participants.
Consequently, it is imperative to assess the presence of common method
bias [84]. To examine CMB, “Harmon’s one-factor test” was employed
using SPSS, employing exploratory factor analysis where all variables
load onto a single factor [85]. This method, widely accepted for
detecting common method bias, is characterized by the emergence of a
single factor or the first factor capturing a substantial amount of
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Technology in Society 76 (2024) 102454
variance (50 %) [86]. The results, based on principal axis factoring,
revealed that only 41.36 % of the total variance was accounted for by
this single factor, well below the 50 % threshold [87]. Therefore, it can
be concluded that common method variance does not pose a concern in
this research. Moreover, the study evaluated the variance inflation fac­
tor (VIF) to identify potential collinearity issues, considering a threshold
of VIF ≥5 as indicative of a problem [88]. All VIF values in the current
study were found to be below the recommended conservative threshold
of signaling collinearity, which is 5 [89], as illustrated in the table. The
normality of the data was assessed through the Kolmogorov-Smirnov
and Shapiro-Wilk tests, indicating a significant departure from
normality (p < 0.05) for all latent variables. Consequently, the null
hypothesis was rejected, signifying that the data deviates from a normal
distribution, so covariance-based structured equation modeling (SEM)
was not recommended. Instead, a variance-based SEM of PLS was used,
as it is robust to non-normal distributions [90]. Smart PLS 4.00 was used
to test hypotheses, and a two-step approach was employed to formulate
the measurement model and develop the structural model to test hy­
potheses and validate results.
4. Result and discussion
The data was analyzed using the PLS-SEM technique, which is suit­
able for small sample sizes and non-normal data [88]. PLS-SEM is a
prediction-oriented technique that is better for exploratory purposes in
testing existing theories [91].
4.1. Demographic profile
The demographic makeup of a nation profoundly affects its economic
landscape, particularly in the realm of stock market investments. In the
context of Pakistan, the prevalence of a youthful demographic signifi­
cantly impacts investor composition. Younger individuals, known for
their elevated risk tolerance, often exhibit a propensity for embracing
stock market risks in pursuit of higher returns, fostering a more dynamic
and vigorously traded market. Their tech-savvy nature further drives a
surge in online trading, fostering the adoption of financial technology
solutions. The collective behavior of this demographic wields consid­
erable influence over market dynamics, shaping trends, sentiment, and
trading patterns.
Table 1 displays the demographic information of the participants. It
shows that 90.2 % were male and 9.80 % were female. Additionally,
41.8 % were single, and 58.2 % were married. In terms of age, 34.8 %
were 25 years or younger, 31.2 % were between 26 and 35 years, 24.5 %
were between 36 and 45 years, and 9.50 % were 46 years or older.
Furthermore, 2.80 % had an intermediate education, 22.2 % had a
bachelor’s degree, 57.2 % had a master’s degree, and 17.8 % had a
higher education. With regard to experience, 27.6 % had 5 years or less,
38.1 % had 6–10 years, 24.0 % had 11–15 years, and 9.50 % had 16
years or more. In terms of income, 1.80 % had an annual income of 1 lac
or less, 28.6 % had an income of 2–3 lac, 47.4 % had an income of 4–5
lac, and 21.4 % had an income of 6 lac or more. Finally, 12.4 % invested
daily, 60.8 % invested weekly, 26.5 % invested monthly, and 0.5 %
invested yearly in the stock market.
The coding for “gender” likely designates 1 for male and 2 for female,
with a mean of 1.097 and a standard deviation of 0.297, indicating a
predominantly male participant base with relatively low gender distri­
bution variability. Marital status, coded as 1 for single and 2 for married,
has a mean of 1.582 and a standard deviation of 0.493, suggesting a
higher prevalence of married participants with some variability. The
mean age is 2.087 with a standard deviation of 0.984, reflecting a
diverse age distribution, while education has a mean of 2.899 and a
standard deviation of 0.709, indicating a tendency towards higher
qualifications with some educational diversity. With a mean of 2.162
and a standard deviation of 0.938, participants exhibit a moderate level
of professional experience. The mean annual income is 2.889 with a
R. Ullah et al. Technology in Society 76 (2024) 102454

Table 1 a 24 % change in model 2 and model 3 with ΔF (1, 384) = 133.601, p <
Demographic profile of the respondents. 0.05.
Description Frequency (%) Mean S.D In step 4, the R2 value of 0.372 revealed that gender, marital status,
age, and education explained 37.2 % of the variance in investment de­
Gender 1.097 0.297
1 Male 350 90.2 cision making with F (4, 383) = 56.652, p < 0.05. The findings revealed
2 Female 38 9.80 that gender (β = − 0.025, p > 0.05) and marital status (β = 0.078, p >
Marital Status 1.582 0.493 0.05) have an insignificant impact, while age (β = 0.516, p < 0.05) and
1 Single 162 41.8 education (β = 0.320, p < 0.05) have a significant impact on investment
2 Married 226 58.2
Age 2.087 0.984
decision making. The ΔR2 value of 0.102 revealed a 10.2 % change in
1 ≥25 years 135 34.8 model 3 and model 4 with ΔF (1, 383) = 62.312, p < 0.05.
2 26–35 years 121 31.2 In step 5, the R2 value of 0.499 revealed that gender, marital status,
3 36–45 years 95 24.5 age, education, and experience explained 49.9 % of the variance in in­
4 46 years ≤ 37 9.50
vestment decision making with F (5, 382) = 76.160, p < 0.05. The
Education 2.899 0.709
1 Intermediate 11 2.80 findings revealed that gender (β = − 0.017, p > 0.05) has an insignificant
2 Bachelor 86 22.2 impact, while marital status (β = 0.078, p < 0.05), age (β = 0.518, p <
3 Master 222 57.2 0.05), education (β = 0.320, p < 0.05), and experience (β = 0.356, p <
4 MPhil/PhD 69 17.8 0.05) have a significant impact on investment decision making. The ΔR2
Experience 2.162 0.938
1 ≥5 years 107 27.6
value of 0.127 revealed a 12.7 % change in model 4 and model 5 with ΔF
2 6–10 years 148 38.1 (1, 382) = 97.248, p < 0.05.
3 11–15 years 96 24.7 In step 6, the R2 value of 0.615 revealed that gender, marital status,
4 16 years ≤ 37 9.50 age, education, experience, and annual income explained 61.5 % of the
Annual Income 2.889 0.750
variance in investment decision making with F (6, 381) = 101.619, p <
1 ≥1 lac 7 1.80
2 2-3 lac 112 28.9 0.05. The findings revealed that gender (β = − 0.041, p > 0.05) has an
3 4-5 lac 186 47.9 insignificant impact, while marital status (β = 0.084, p < 0.05), age (β =
4 6 lac ≤ 83 21.4 0.510, p < 0.05), education (β = 0.351, p < 0.05), experience (β =
Frequency of Investment 2.154 0.619 0.389, p < 0.05), and annual income (β = 0.344, p < 0.05) have a sig­
1 Daily 47 12.1
nificant impact on investment decision making. The ΔR2 value of 0.116
2 Weekly 236 60.8
3 Monthly 103 26.5 revealed a 11.6 % change in model 5 and model 6 with ΔF (1, 381) =
4 Annually 2 0.5 115.135, p < 0.05.
Source: The author’s survey data (2023) and outputs of statistical analysis using
In step 7, the R2 value of 0.712 revealed that gender, marital status,
SPSS software. age, education, experience, annual income, and frequency of investment
explained 71.2 % of the variance in investment decision making with F
(7, 380) = 134.493, p < 0.05. The findings revealed that gender (β =
standard deviation of 0.750, pointing to a moderate income level and
− 0.327, p > 0.05) has an insignificant impact, while marital status (β =
income variability. Lastly, the mean for the frequency of investment is
0.074, p < 0.05), age (β = 0.495, p < 0.05), education (β = 0.324, p <
2.154 with a standard deviation of 0.619, indicating a tendency towards
0.05), experience (β = 0.382, p < 0.05), annual income (β = 0.363, p <
more frequent investment, possibly on a weekly or monthly basis.
0.05), and frequency of investment (β = 0.316, p < 0.05) have a sig­
nificant impact on investment decision making. The ΔR2 value of 0.097
4.2. Hierarchical regression analysis revealed a 9.6 % change in model 6 and model 7 with ΔF (1, 380) =
128.193, p < 0.05.
A hierarchical regression analysis was performed to assess the in­
fluence of demographic variables, including gender, marital status, age, 4.3. Measurement model
education, experience, annual income, and frequency of investment, on
investment decision making in the stock market of Pakistan. The find­ The researchers assessed using measurement models by calculating
ings of the hierarchical regression analysis for demographic variables each item’s loading factor, Cronbach’s alpha, composite reliability,
and their impact on investment decision making in the Pakistani stock convergent validity, and finally discriminant validity [92,93].
market are presented in Table 2.
Table 2 shows the impact of gender, marital status, age, education, 4.3.1. Reliability analysis and convergent validity
experience, annual income, and frequency of investment on the invest­ Table 3 displays the CR coefficients for the latent variables in the
ment decision making of individual investors. In step 1, the R2 value of current study, which range from 0.834 to 0.873, indicating good inter­
0.003 revealed that gender explained 0.3 % of the variance in invest­ nal consistency reliability [88]. To assess convergent validity, AVE
ment decision making with F (1, 386) = 1.078, p > 0.05. The findings should be at least 0.50 or higher [92], and the AVE values (Table 3)
revealed that gender has an insignificant impact on investment decision show that investment decision making as the dependent variable has a
making (β = − 0.053, p > 0.05). value of 0.597, while the dimensions of ChatGPT usage as predictors had
In step 2, the R2 value of 0.015 revealed that gender and marital AVE values of 0.681, 0.656, 0.881, 0.681, and 0.695, respectively, and
status explained 1.5 % of the variance in investment decision making financial literacy as a moderator has an AVE of 0.611.
with F (2, 385) = 3.003, p > 0.05. The findings revealed that gender (β
= − 0.047, p > 0.05) and marital status positively predicted investment 4.3.2. Discriminant validity
decision making (β = 0.112, p < 0.05). The ΔR2 value of 0.013 revealed Table 4 displays HTMT ratios used to estimate discriminant validity,
a 1 % change in model 1 and model 2 with ΔF (1, 385) = 4.917, p < 0.05. indicating no issues as all values are below the standard threshold of 0.9.
In step 3, the R2 value of 0.270 revealed that gender, marital status, Additionally, the Fornell and Larcker criterion advanced by Ref. [94]
and age explained 27 % of the variance in investment decision making was applied in this study to assess discriminant validity. Table 3 dem­
with F (3, 384) = 47.225, p < 0.05. The findings revealed that gender (β onstrates that all constructs have an AVE greater than the critical value
= − 0.034, p > 0.05) and marital status (β = 0.080, p > 0.05) have an of 0.50. Table 4 confirms that the square root of AVE is larger than the
insignificant impact, while age (β = 0.505, p < 0.05) has a significant correlation between variables, suggesting satisfactory discriminant
impact on investment decision making. The ΔR2 value of 0.254 revealed validity for this empirical research (see Table 5).

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R. Ullah et al. Technology in Society 76 (2024) 102454

Table 2
Hierarchical regression result for demographic variable.
Variable B 95 % CI SE B β R2 Δ R2

LL UL

Step 1 0.003 0.003

Constant 2.245* 2.145 2.345 0.051
Gender − 0.046 − 0.134 0.041 0.045 − 0.053

Step 2 0.015 0.013*

Constant 2.145* 2.011 2.278 0.068
Gender − 0.041 − 0.128 0.047 0.045 − 0.047
Marital Status 0.059* 0.007 0.112 0.027 0.112*

Step 3 0.270 0.254*

Constant 1.879* 1.755 2.002 0.063
Gender − 0.029 − 0.105 0.046 0.038 − 0.034
Marital Status 0.043 − 0.003 0.088 0.023 0.080
Age 0.134* 0.111 0.157 0.012 0.505*

Step 4 0.372 0.102*

Constant 1.524* 1.379 1.669 0.074
Gender − 0.022 − 0.092 0.048 0.036 − 0.025
Marital Status 0.042 − 0.001 0.084 0.022 0.078
Age 0.137* 0.116 0.158 0.011 0.516*
Education 0.118* 0.089 0.147 0.015 0.320*

Step 5 0.499 0.127*

Constant 1.283* 1.145 1.421 0.070
Gender − 0.015 − 0.078 0.048 0.032 − 0.017
Marital Status 0.041* 0.003 0.079 0.019 0.078*
Age 0.138* 0.119 0.157 0.010 0.518*
Education 0.124* 0.098 0.150 0.013 0.336*
Experience 0.100* 0.080 0.119 0.010 0.358*

Step 6 0.615 0.116*

Constant 0.925* 0.787 1.063 0.070
Gender − 0.036 − 0.091 0.019 0.028 − 0.041
Marital Status 0.045* 0.011 0.078 0.017 0.084*
Age 0.135* 0.119 0.152 0.008 0.510*
Education 0.129* 0.106 0.152 0.012 0.351*
Experience 0.108* 0.091 0.126 0.009 0.389*
Annual Income 0.120* 0.098 0.142 0.011 0.344*

Step 7 0.712 0.097*

Constant 0.638* 0.508 0.767 0.066
Gender − 0.008 − 0.056 0.040 0.024 − 0.009
Marital Status 0.039* 0.010 0.068 0.015 0.074*
Age 0.132* 0.117 0.146 0.007 0.495*
Education 0.119* 0.099 0.139 0.010 0.324*
Experience 0.106* 0.091 0.121 0.008 0.382*
Annual Income 0.126* 0.107 0.145 0.010 0.363*
Frequency of Investment 0.133* 0.110 0.156 0.012 0.316*

Note: CI = confidence interval; LL = lower limit; UL = upper limit; SE = standard error; *p < 0.05.
Source: The author’s survey data (2023) and outputs of statistical analysis using SPSS software.

4.3.3. Coefficient of determination (R2) and predictive relevance (Q2)
The empirical research shows an R2 of 0.666, meaning that ChatGPT
usage explains 66 % of the variance in stock market investment de­
cisions. The high R2 value was noted in the study [95]. Additionally, the
Q2 value of 0.639 indicates a good predictive relevance criterion was
established.
4.4. Structural model
The study employed 5000 bootstrapped samples and had 388 re­
spondents to evaluate the significance of path coefficients [92,93]. The
results of the structural model estimates are shown in Table 6.
According to Hypothesis 1, analyzing data in the stock market has a
significant effect on individual investment decision making. Table 6
displays the findings that support H1, demonstrating that analyzing data
has a significant positive impact on investor decision making (β1 =
0.175; p-value = 0.006). Similarly, Hypothesis 2 suggests that managing
risk has a significant impact on individual investment decision making,
which is confirmed by the results presented in Table 6 (β2 = 0.125; p-
value = 0.006). Hypothesis 3 proposes that optimizing portfolios has a
positive effect on investment decision making, which is supported by the
findings in Table 6 (β3 = 0.125; p-value = 0.004). Furthermore, Hy­
pothesis 4 asserts that forecasting market trends has a positive effect on
individual investment decision making, which is confirmed by the re­
sults presented in Table 6 (β4 = 0.197; p-value = 0.000). Hypothesis 5
suggests that conducting sentiment analysis also has a positive effect on
individual investment decision making, which is supported by the
findings presented in Table 6 (β5 = 0.147; p-value = 0.001). Finally,
Hypothesis 6 proposes that financial literacy improves individual in­
vestment decision making, which is confirmed by the results presented
in Table 6 (β6 = 0.225; p-value = 0.000).
According to hypothesis seven, financial literacy plays a moderating
role in the relationship between analyzing data and investment decision
making in the stock market. However, the results of the study indicate
that there is no statistically significant moderating effect of financial
literacy on this relationship (β7 = − 0.051; p-value = 0.394), as shown in
Table 6. Therefore, hypothesis seven is not supported. Hypothesis eight
suggests that financial literacy moderates the relationship between
managing risk and investment decision making of individuals in the
stock market. However, the findings of the study show that financial

9
R. Ullah et al. Technology in Society 76 (2024) 102454

Table 3 Table 4
Factors loadings, VIF, reliability, and validity. HTMT ratio and Fornell-Larcker criterion.
Constructs FL VIF Alpha C.R AVE HTMT Ratio

Analyzing Data (AD) 0.844 0.895 0.681 AD MR OP FMT CSA FL ID

AD.1 0.805 1.617
Analyzing Data
AD.2 0.821 1.986
Managing Risk 0.752
AD.3 0.825 1.894
Optimizing 0.521 0.460
AD.5 0.848 2.116
Portfolio
Managing Risk (MR) 0.739 0.851 0.656 Forecasting 0.840 0.880 0.452
MR.1 0.826 1.625 Market Trend
MR.2 0.808 1.604 Conducting 0.631 0.634 0.640 0.681
MR.4 0.796 1.319 Sentiment
Analysis
Optimizing Portfolio (OP) 0.933 0.957 0.881
Financial 0.826 0.780 0.471 0.887 0.606
OP.1 0.945 4.541
Literacy
OP.3 0.948 4.648
Investment 0.809 0.785 0.600 0.850 0.686 0.820
OP.4 0.923 3.171
Decision
Forecasting Market Trend (FMT) 0.766 0.865 0.681 Making
FMT.1 0.836 1.546
Fornell-Larcker Criterion
FMT.3 0.843 1.686
FMT.5 0.795 1.494 Analyzing Data 0.825
Managing Risk 0.603 0.810
Conducting Sentiment Analysis 0.889 0.919 0.695
Optimizing 0.467 0.383 0.939
(CSA)
Portfolio
CSA.1 0.845 2.538
Forecasting 0.675 0.677 0.382 0.825
CSA.2 0.847 2.577
Market Trend
CSA.3 0.903 3.339
Conducting 0.546 0.518 0.582 0.563 0.833
CSA.4 0.803 2.137
Sentiment
CSA.5 0.763 1.801
Analysis
Financial Literacy (FL) 0.841 0.887 0.611 Financial 0.694 0.629 0.421 0.710 0.526 0.782
FL.1 0.721 1.590 Literacy
FL.2 0.772 1.761 Investment 0.684 0.620 0.530 0.680 0.591 0.687 0.773
FL.3 0.821 1.989 Decision
FL.4 0.800 1.826 Making
FL.5 0.790 1.843
Source: The author’s survey data (2023) and outputs of statistical analysis using
Investment Decision Making (ID) 0.831 0.881 0.597 Smart PLS software.
ID.1 0.795 1.946
ID.2 0.785 1.796
ID.3 0.779 1.818
Table 5
ID.4 0.790 1.936
ID.5 0.713 1.676 Coefficient of determination (R2) and predictive relevance (Q2).
R2 Adj R2 Q2 Predict
Source: The author’s survey data (2023) and outputs of statistical analysis using
Smart PLS software. Investment Decision Making 0.666 0.656 0.639

Source: The author’s survey data (2023) and outputs of statistical analysis using
literacy has no significant moderating effect on the relationship between Smart PLS software.
managing risk and investment decision making of individuals in the
stock market (β8 = − 0.017; p-value = 0.752), as reported in Table 6.
Therefore, hypothesis eight is also not supported. Table 6
Hypothesis nine states that financial literacy moderates the rela­ Path coefficients summary for direct and moderating effects.
tionship between optimizing portfolios and the investment decision Hypotheses β values t values p values Decision
making of individuals in the stock market (see Fig. 2)(see Fig. 3). Panel A: Exogenous Variables
However, the finding of this study shows that financial literacy nega­
H1: AD -> ID 0.175 2.776 0.006 Supported
tively moderates the relationship between optimizing portfolios and H2: MR -> ID 0.125 2.723 0.006 Supported
investment decision making of individuals in the stock market (β9 = H3: OP -> ID 0.125 2.865 0.004 Supported
− 0.153; p-value = 0.000), and, thus lower the financial literacy, the H4: FMT -> ID 0.197 3.643 0.000 Supported
stronger this relationship, which suggests that when financial literacy H5: CSA -> ID 0.147 3.390 0.001 Supported
H6: FL -> ID 0.225 4.508 0.000 Supported
and optimizing portfolios interact, it negatively affects the nexus of
Panel B: Moderating Terms
optimizing portfolios and investment decision making of individual in H7: FL x AD -> ID − 0.051 0.852 0.394 Not Supported
the stock market. Fig. 4 shows the moderating effect on the relationship H8: FL x MR -> ID − 0.017 0.317 0.752 Not Supported
between optimizing portfolios and investment decision making of in­ H9: FL x OP -> ID − 0.153 4.233 0.000 Supported
dividuals in the stock market in the cases of high financial literacy and H10: FL x FMT -> ID 0.168 3.276 0.001 Supported
H11: FL x CSA -> ID 0.023 0.590 0.555 Not Supported
low financial literacy. It refers to financial literacy reducing by 15.3 %
[96] the positive relationship between optimizing portfolios and in­ Source: The author’s survey data (2023) and outputs of statistical analysis using
vestment decision making of individuals in the stock market. This means Smart PLS software.
that the nine hypothesis is accepted.
According to hypothesis ten, financial literacy plays a moderating that when an individual’s financial literacy interacts with the relation­
role in the relationship between forecasting market trends and indi­ ship between forecasting market trends and investment decision mak­
vidual investment decision making in the stock market. However, the ing, it strengthens the relationship. Fig. 5 demonstrates this moderating
study’s results indicate that financial literacy has a positive moderating effect by showing that financial literacy intensifies the positive rela­
effect on this relationship (β10 = 0.168; p-value = 0.001). This suggests tionship between forecasting market trends and investment decision

10
R. Ullah et al.
Fig. 3. Structural model.
Source: Outputs of Smart PLS software considering the structural model
making by 16.8 % [96]. Therefore, hypothesis ten is supported. On the
other hand, hypothesis eleven proposes that financial literacy moderates
the relationship between conducting sentiment analysis and individual
investment decision making in the stock market. However, the study’s
findings reveal that financial literacy does not have a statistically sig­
nificant moderating effect on this relationship (β11 = 0.023; p-value =
0.555), as shown in Table 6. As a result, hypothesis eleven is not
supported.
4.5. Discussion
The discussion of the empirical results reported in this study repre­
sents the research article that examined the impact of using ChatGPT, a
language model trained by OpenAI, on investment decision making in
the stock market of Pakistan. The study specifically looked at the usage
dimensions of ChatGPT, including data analysis, managing risk, port­
folio optimization, forecasting market trends, and conducting sentiment
analysis, and how these relationships are moderated by financial
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Technology in Society 76 (2024) 102454
literacy. The study results indicate that ChatGPT usage dimensions have
a positive and significant impact on investment decision making in the
stock market of Pakistan, which are in line with [3]. These findings
suggest that the use of ChatGPT in investment decision making can
provide investors with valuable insights and help them make informed
investment decisions [14].
The study found that the use of ChatGPT for data analysis had a
positive impact on investment decision making in the stock market,
which are in line with [4]This suggests that ChatGPT can be used to
extract valuable insights from a large amount of data, leading to better
investment decisions. However, financial literacy did not moderate this
relationship significantly, which are in contradiction with the study by
Ref. [3]. The study found that the utilization of ChatGPT in stock market
investment decision making prominently featured data analysis as a
crucial dimension [4]. Those investors who employed ChatGPT for data
analysis experienced enhanced decision making by leveraging the in­
sights derived from the data provided. This underscores the significance
of integrating ChatGPT-powered data analysis into the realm of
R. Ullah et al. Technology in Society 76 (2024) 102454

Fig. 4. Moderating effect of financial literacy when interacting with optimizing portfolio.
Source: Outputs of statistical analysis using Smart PLS software.

Fig. 5. Moderating effect of financial literacy when interacting with forecasting market trends.
Source: Outputs of statistical analysis using Smart PLS software.

investment decision making. Alternatively, if reliance on ChatGPT for
data analysis increases, there might be a risk of overlooking nuanced
quantitative data analysis techniques. Human intuition and domain
expertise are crucial for effective decision making, and an overreliance
on AI-generated analyses could lead to oversight or misinterpretation
[97].
The results showed that using ChatGPT for managing risk had a
positive impact on investment decision making in the stock market,
which are in line with the study of [19]. This suggests that ChatGPT can
be used to identify and mitigate risks, leading to more informed and less
risky investment decisions. However, financial literacy did not moderate
this relationship significantly, which are in contradiction with [3]. The
research revealed that managing risk was a key component of using
ChatGPT to make stock market investment decisions [19]. By managing
their risk with ChatGPT, investors were able to reduce their losses and
maximize their gains. This emphasizes how crucial it is to use ChatGPT
to manage risk when investing in stocks. Contrarily, relying solely on AI
for risk management may lead to a lack of human judgment and un­
derstanding of contextual factors [98]. Human expertise is essential for
identifying unforeseen risks and making subjective risk assessments that
AI might not capture accurately.
The study found that the use of ChatGPT for portfolio optimization
had a positive impact on investment decision making in the stock mar­
ket, which are in line with the study of [1,41]. This suggests that

12
R. Ullah et al.
ChatGPT can be used to optimize investment portfolios, leading to
higher returns and lower risk. However, financial literacy moderated
this relationship negatively, which are in contradiction with the study
by Ref. [3], suggesting that investors with higher financial literacy may
not rely on ChatGPT as much for portfolio optimization. The research
indicates that the utilization of ChatGPT extends to portfolio optimiza­
tion, serving as a crucial aspect in guiding investment decision making
within the stock market [19]. Those who incorporated ChatGPT for
portfolio optimization experienced enhanced diversification of their
investments, leading to amplified returns. This demonstrates how
important it is to optimize portfolio using ChatGPT when trading stocks.
While AI can assist in portfolio optimization, exclusive reliance on
ChatGPT may neglect certain market intricacies. Effective portfolio
management often requires a deep understanding of market dynamics
and economic trends that may not be fully captured by AI models [67].
The results showed that using ChatGPT for forecasting market trends
had a positive impact on investment decision making in the stock mar­
ket, which are in line with the study of [41]. This suggests that ChatGPT
can be used to predict future market trends, leading to more profitable
investment decisions. However, financial literacy moderated this rela­
tionship positively, supported by Ref. [3], suggesting that investors with
higher financial literacy rely on ChatGPT as much for conducting
sentiment analysis. The study found that one significant aspect of using
ChatGPT to make stock market investment decisions was forecasting
market trends [41]. With ChatGPT, investors could predict market
trends and use that information to make better-informed decisions. This
emphasizes how important ChatGPT is to use when attempting to fore­
cast market trends related to stock market investments. Foreseeing
market trends that are completely predicted by artificial intelligence
(AI) may overlook qualitative factors and unexpected events that can
significantly impact markets. Human intuition and real-time analysis
can provide valuable insights that AI models may not comprehend [98].
The study found that using ChatGPT for conducting sentiment
analysis had a positive impact on investment decision making in the
stock market, which are in line with the study of [21]. This suggests that
ChatGPT can be used to analyze market sentiment, leading to more
informed investment decisions. However, financial literacy did not
moderate this relationship significantly, which contradicts the study by
Ref. [3]. The research revealed that sentiment analysis played a key role
in ChatGPT’s application for making stock market investment decisions
[21]. Investors who used ChatGPT for conducting sentiment analysis
were able to make more informed decisions based on the sentiment of
the market. This highlights the significance of utilizing ChatGPT for
sentiment analysis in the stock market. Exclusively depending on
ChatGPT for sentiment analysis might not capture the full spectrum of
human emotions and market sentiment. Human interpretation is
essential for understanding the context behind sentiment and making
nuanced decisions based on emotional cues [97].
Financial literacy is undeniably crucial for a fundamental under­
standing of finances, but it may not directly govern the intricate re­
lationships between various dimensions of ChatGPT usage, such as
analyzing data, managing risk, conducting sentiment analysis and in­
vestment decisions making. Financial literacy provides individuals with
the foundational knowledge of financial statements and ratios [99], but
effective investment decision making necessitates additional skills like
critical thinking, analytical reasoning, and an in-depth grasp of market
trends. Analyzing data involves technical aspects beyond the scope of
basic financial literacy, including chart interpretation, pattern recogni­
tion, and statistical models [30]. Similarly, managing risk requires more
advanced strategies like hedging, risk modeling, and scenario analysis,
extending beyond the basic risk concepts covered in financial literacy
education. Sentiment analysis, involving the assessment of market par­
ticipants’ emotions and opinions, goes beyond basic financial literacy
and requires expertise in behavioral finance, psychology, and advanced
analytical tools. While financial literacy is a valuable starting point, a
comprehensive approach to investment decision making encompasses a
13
Technology in Society 76 (2024) 102454
broader set of skills and experiences beyond basic financial under­
standing [3].
The study also found that financial literacy plays a significant role in
moderating the relationship between ChatGPT usage dimensions and
investment decision making in the stock market, which are in line with
the study of [1,3]. Financially literate individuals were found to have a
better understanding of the data provided by ChatGPT, which in turn
helped them make better investment decisions. This finding highlights
the importance of financial literacy in enhancing the effectiveness of
ChatGPT usage in investment decision making. It suggests that investors
who have a better understanding of financial concepts and the stock
market are more likely to use ChatGPT effectively for investment deci­
sion making.
The relationship between ChatGPT usage dimensions and investment
decision making is context-dependent. It largely depends on how these
tools are employed in the investment decision making process [100].
The effectiveness of these tools in investment decisions depends on their
accuracy, reliability, and the extent to which they complement human
judgment. Incorporating ChatGPT into the investment decision making
process should be done cautiously, with a clear understanding of its
limitations and strengths [101]. The optimal approach may involve a
synergistic combination of AI tools and human expertise.
Furthermore, the study suggests that the usage of ChatGPT for in­
vestment decision making can provide a competitive advantage to in­
vestors in the stock market. The results indicate that investors who use
ChatGPT for investment decision making are more likely to make
profitable investment decisions than those who do not use ChatGPT [3,
4,19,21,41].
The issue of ChatGPT’s hallucination is indeed a crucial aspect that
needs careful consideration, especially when it comes to using the model
for investment decision making. Hallucinations refer to instances where
the model generates information or responses that may be factually
incorrect, speculative, or not grounded in real-world data [97]. Trans­
parency in the functioning of ChatGPT is essential and aids in better
assessing the reliability of the model’s responses [102]. Users should
have a clear understanding of the model’s limitations and potential for
generating speculative information [101]. Educating users about the
potential for hallucinations and advising them to verify critical infor­
mation independently is essential. Establishing guidelines for respon­
sible use and making users aware that ChatGPT is a tool to assist rather
than replace human judgment is crucial [98].
Combining ChatGPT with human expertise can enhance the reli­
ability of investment decision making. Human experts can validate the
information provided by ChatGPT and ensure that decisions are based
on a more comprehensive and accurate understanding of the market
[103]. Establishing benchmarks and evaluation metrics for ChatGPT in
the context of investment decision making can provide a quantitative
measure of its performance. This allows users to assess the model’s ac­
curacy and reliability over time. Regular updates to the model [104],
based on user feedback and real-world performance, are crucial for
addressing hallucination issues. Iterative improvement allows OpenAI to
fine-tune the model and reduce instances of generating inaccurate or
speculative content [105].
The responsible and informed use of ChatGPT in conjunction with
human expertise, transparency, and ongoing improvements can
contribute to building trust in its application for investment decision
making. It is crucial to acknowledge the model’s limitations [101] and
work towards mitigating potential risks while leveraging its capabilities
to enhance the decision making process. The use of ChatGPT for in­
vestment decision making depends on a combination of factors,
including its capabilities, transparency, reliability, and ongoing perfor­
mance. Regular updates, responsiveness to user feedback, and a
commitment to ethical practices contribute to building and maintaining
trust among investors [104].
Investors in the stock market typically use the free version of
ChatGPT for preliminary research and information gathering. The free
R. Ullah et al.
version provides general insights, market trends, and basic analysis,
offering a broad understanding of various stocks and sectors. It can offer
a broad understanding of market sentiment and key factors influencing
stock prices. However, for more sophisticated and personalized invest­
ment decision making, investors often opt for the paid version, which
may offer advanced features, real-time data, and deeper analysis capa­
bilities [100]. Ultimately, the choice between the free and paid versions
depends on the investor’s specific needs, preferences, and the depth of
analysis required for their investment strategy.
In conclusion, the study shows that ChatGPT usage dimensions such
as data analysis, managing risk, portfolio optimization, forecasting
market trends, and conducting sentiment analysis have a significant
impact on investment decision making in the stock market. Financial
literacy plays an important role in moderating this relationship. The
results of this study can be useful for investors who are looking to make
more informed investment decisions in the stock market. However, the
effectiveness of these applications depends on how well the technology
is integrated into the investment decision making process and how it is
used in conjunction with human expertise [75]. Integrating ChatGPT
into investment decision making processes can enhance efficiency,
automate routine tasks, and process vast amounts of data. However,
human oversight remains crucial for critical decision points, interpret­
ing results, and adapting to rapidly changing market conditions. The key
is to strike a balance that leverages the strengths of both AI and human
intelligence. Overall, the study provides valuable insights into the po­
tential benefits of using ChatGPT in investment decision making and the
role of financial literacy in moderating the relationship.
5. Conclusion and implications
One of the major goals of this study is to better understand the
relationship between ChatGPT usage dimensions such as analyzing data,
managing risk, optimizing portfolios, forecasting market trends, and
conducting sentiment analysis and investment decisions making as well
as the moderating role of financial literacy. According to the empirical
findings of the study, the ChatGPT usage dimensions mentioned above
are the key dimensions influencing investment decision making in the
stock market. The significant moderation effect of financial literacy on
the association between ChatGPT usage dimensions and investment
decision making in the stock market was also highlighted by the re­
searchers. The empirical results confirm that financial literacy has a
positive and considerable impact on investor investment decision
making in the stock market when it interacts with ChatGPT usage di­
mensions (analyzing data, managing risk, optimizing portfolios, fore­
casting market trends, and conducting sentiment analysis). In summary,
ChatGPT is a useful tool that can aid in making investment decisions, but
it is important to couple it with financial literacy for optimal results.
The findings have important implications for investors, financial
advisors, and policymakers who are interested in leveraging the benefits
of artificial intelligence and machine learning in investment decision
making. First, the Securities and Exchange Commission of Pakistan
(SECP) should create a regulatory framework to govern the usage of AI-
based chatbots in investment decision making. This will ensure that
investors are protected from any fraudulent or misleading information.
The SECP should also create policies to ensure the privacy of investors’
data, as ChatGPT will be collecting and processing personal data to
provide investment advice. Second, to fully utilize ChatGPT for invest­
ment decision making in the stock market of Pakistan, policymakers
should ensure that relevant data is available to investors. This includes
historical stock prices, financial reports of companies, and other eco­
nomic indicators. Policymakers should promote investor education and
awareness of ChatGPT’s capabilities and limitations. This will help in­
vestors make informed decisions and avoid relying solely on ChatGPT’s
recommendations.
Third, the government should encourage collaboration between
ChatGPT developers and traditional investment advisory services to
14
Technology in Society 76 (2024) 102454
improve the overall investment landscape in Pakistan. The government
should also allocate resources to promote research and development in
the field of AI-based investment decision making to improve the quality
of advice provided by ChatGPT and other similar technologies. Fourth,
the use of ChatGPT for investment decision making should be regulated
to ensure that the system complies with ethical and legal standards. This
can be done through licensing and certification requirements. Regula­
tors can develop training programs for financial advisors to help them
understand the use of AI-based investment tools, such as ChatGPT.
Regulators can monitor the effectiveness of AI-based investment tools in
improving investment decision making and take steps to improve these
tools. ChatGPT should be designed to protect users’ privacy and data
security. This can be achieved through data encryption, anonymization,
and access controls.
Fifth, the use of ChatGPT in the stock market can set a precedent for
the integration of AI in the financial industry. Policymakers should
develop regulations and policies that promote the ethical and respon­
sible use of AI in the stock market to ensure that investors are not
adversely affected by AI’s biases or inaccuracies. Policymakers should
ensure that investors’ rights are protected when AI is used in the stock
market. Investors should have access to the data used by ChatGPT and
understand the algorithm’s decision making process. Policymakers
should also ensure that investors are not discriminated against or
disadvantaged due to the use of AI in the stock market. Policymakers
should promote education and training programs for investors to
enhance their understanding of AI and its applications in the stock
market. This can include courses and workshops that teach investors
how to use ChatGPT effectively to make informed investment decisions.
Sixth, financial regulators should encourage companies to provide
more transparent data about their financial performance, which can be
used by ChatGPT to analyze the market. Promoting data standardization
across the Pakistan stock market can make it easier for ChatGPT to
analyze and interpret the data. Financial regulators should require
companies to disclose potential risks associated with their stocks, which
can be used by ChatGPT to inform investment decisions. Financial reg­
ulators should encourage investors to seek out education and training on
risk management strategies, which can help them make more informed
investment decisions. Financial regulators should encourage investors to
diversify their portfolios to minimize risks. Financial regulators should
promote education and training on portfolio optimization strategies,
which can help them make more informed investment decisions. Reg­
ulators can develop guidelines for AI-based portfolio optimization to
ensure that investors are properly informed about the risks and benefits
associated with these tools.
Seventh, the algorithms used by ChatGPT should be transparent and
explainable so that users can understand how the system works and
make informed decisions. The effectiveness of ChatGPT in improving
investment decision making should be evaluated periodically through
user feedback and performance metrics. This can be used to improve the
system and inform policy decisions. Regulators should monitor the
impact of AI-based investment tools on the market and take action if
necessary to protect investors. Eighth, the government of Pakistan can
encourage the use of AI-based tools like ChatGPT by providing tax in­
centives or subsidies to investors who use such tools. This will encourage
investors to use these tools and make informed decisions. The govern­
ment of Pakistan can support research and development in the field of
AI-based tools like ChatGPT. This will help to improve the accuracy and
reliability of these tools and ensure that investors have access to the best
possible information.
Ninth, financial literacy is crucial to making informed investment
decisions. The SECP can increase financial literacy by providing training
and education on investing, portfolio management, and risk manage­
ment. This can help investors use ChatGPT effectively to make informed
investment decisions. The SECP can encourage the use of ChatGPT by
providing incentives to investors who use the technology to make
informed investment decisions. These incentives can include tax credits,
R. Ullah et al. Technology in Society 76 (2024) 102454

reduced trading fees, or access to exclusive investment opportunities.
The SECP can regulate the use of ChatGPT to ensure that investors are
using the technology ethically and responsibly. The SECP can establish
guidelines for the use of ChatGPT, such as requiring investors to disclose
their use of the technology when making investment decisions.
5.1. Limitations and the direction of future research
The study only focuses on the relationship between ChatGPT usage
dimensions and investment decision making, neglecting other factors
that could influence investment decisions, such as personal values,
psychological biases, and environmental factors. This narrow focus may
limit the generalizability of the findings.
The study’s sample is limited to individual stock market investors in
Pakistan. This restriction may affect the generalizability of the results to
other populations or countries. To enhance the validity of the findings,
future research should consider conducting similar studies in other
frontier markets.
The study only examines financial literacy as a moderator and does
not explore other potential moderators that could affect the relationship
between ChatGPT usage dimensions and investment decision making.
Considering additional moderators could provide a more comprehensive
understanding of the relationship.
The study utilizes a cross-sectional design, which captures data at a
specific point in time. This design limits the ability to establish causal
relationships between variables and understand the long-term effects of
ChatGPT usage on investment decision making. Future research could
benefit from longitudinal studies to address this limitation.
The primary data for this study were collected directly from the re­
spondents by the authors, and the data will be provided upon request.
However, the lack of publicly available data may limit the ability of
other researchers to replicate or build upon the study’s findings.
The study does not consider other potential factors that could in­
fluence investment decision making, such as technological infrastruc­
ture, the regulatory environment, or market conditions. Including these
factors in future research could provide a more comprehensive under­
standing of the topic.
Funding
The authors received no financial support for the research, author­
ship, and/or publication of this article.
CRediT authorship contribution statement
Rafid Ullah: Conceptualization, Data curation, Formal analysis,
Investigation, Methodology, Resources, Software, Visualization, Writing
- original draft, Writing - review & editing. Hishamuddin Bin Ismail:
Methodology, Supervision, Validation, Writing - review & editing.
Mohammad Tariqul Islam Khan: Methodology, Supervision, Valida­
tion, Writing - review & editing. Ali Zeb: Formal analysis, Investigation,
Methodology, Resources, Writing - original draft, Writing - review &
editing.
Declaration of competing interest
The authors declared no potential conflict of interest with respect to
the research, authorship, and/or publication of this article.
Data availability
Data will be made available on request.

Appendix

Constructs/Items/References

Analyzing Data (AD)

AD.1 I find ChatGPT helpful in analyzing large amounts of investment data.
AD.2 ChatGPT helps me to identify investment opportunities more efficiently than traditional methods.
AD.3 ChatGPT provides accurate and reliable data analysis for investment decision making.
AD.5 I feel confident in using ChatGPT to analyze investment data.

Managing Risk (MR)

MR.1 ChatGPT provides me with comprehensive information about investment risks.
MR.2 ChatGPT helps me to assess and manage risks associated with my investments.
MR.4 I trust ChatGPT to help me make informed decisions about managing investment risks.

Optimizing Portfolio (OP)

OP.1 ChatGPT helps me to identify the most profitable investments for my portfolio.
OP.3 ChatGPT helps me to optimize my portfolio for maximum returns.
OP.4 I feel confident in using ChatGPT to manage my investment portfolio.

Forecasting Market Trend (FMT)

FMT.1 ChatGPT provides me with accurate and reliable market trend forecasts.
FMT.3 ChatGPT helps me to stay ahead of market trends and make proactive investment decisions.
FMT.5 ChatGPT helps me to adjust my investment strategies based on market trends.

Conducting Sentiment Analysis (CSA)

CSA.1 ChatGPT helps me to monitor and analyze market sentiment.
CSA.2 ChatGPT provides me with insights into how investors feel about certain investments.
CSA.3 ChatGPT helps me to make more informed decisions based on market sentiment.
CSA.4 I trust ChatGPT to provide me with accurate and reliable sentiment analysis.
CSA.5 ChatGPT helps me to identify potential investment opportunities based on market sentiment.

Financial Literacy (FL) [22,57]

FL.1 I am knowledgeable about investing.
FL.2 I am confident about my ability to invest.
FL.3 The stock market helps to predict stock prices and earning.
FL.4 Considering a long-term period (e.g. 10–20 years) stocks normally give the highest return.
FL.5 Normally, stocks display highest fluctuation over time.

Investment Decision Making (ID) [63]

ID.1 The rate of return on your recent stock investment meets your expectation.
(continued on next page)

15
R. Ullah et al. Technology in Society 76 (2024) 102454

(continued )
Constructs/Items/References

ID.2 I considered the statements of government officials about the company.

ID.3 You feel satisfied with your trading frequency and trading volume.
ID.4 I considered past performance of the firm’s stock before investing.
ID.5 I considered my feelings for a firm’s products and services.

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