> We first document a significant decline in stock trading volume during ChatGPT outages and find that the effect is stronger for firms with corporate news released immediately before or during the outages. We further document similar declines in the short-run price impact, return variance, and bid-ask spreads, consistent with a reduction in informed trading during the outage periods. Lastly, we use trading volume changes during outages to construct a firm-level measure of the intensity of GAI-assisted trading and provide early evidence of a positive effect of GAI-assisted trading on long-run stock price informativeness.
They're being used, but nobody is really saying anything because the stock market is a zero sum game these days and letting anyone else know that this holds water is a recipe for competition. Programming is about the opposite, the more you give, the more you get, so it makes sense to popularize it as a feature.
> We first document a significant decline in stock trading volume during ChatGPT outages and find that the effect is stronger for firms with corporate news released immediately before or during the outages. We further document similar declines in the short-run price impact, return variance, and bid-ask spreads, consistent with a reduction in informed trading during the outage periods. Lastly, we use trading volume changes during outages to construct a firm-level measure of the intensity of GAI-assisted trading and provide early evidence of a positive effect of GAI-assisted trading on long-run stock price informativeness.
They're being used, but nobody is really saying anything because the stock market is a zero sum game these days and letting anyone else know that this holds water is a recipe for competition. Programming is about the opposite, the more you give, the more you get, so it makes sense to popularize it as a feature.