Research indicates that stock trading volume declines significantly during ChatGPT outages, particularly for firms with recent corporate news and higher transient institutional ownership. The findings suggest that many investors utilize ChatGPT for trading decisions, affecting both short-run price impacts and long-term stock price informativeness.

ChatGPT utilizes generative artificial intelligence to provide context-aware responses, distinguishing itself from traditional search engines like Google and Wolfram Alpha. Its operation involves pre-training through non-supervised learning, allowing it to understand vast amounts of text without specific output associations. The transformer architecture, which employs self-attention mechanisms, is key to processing and generating coherent language.

ChatGPT outages significantly reduce stock trading volume, particularly affecting firms with recent corporate news and higher transient institutional ownership. The study highlights that reliance on generative AI for trading can lead to decreased informed trading and suggests a positive effect of AI-assisted trading on long-term stock price informativeness.

ChatGPT has introduced a new image generation feature powered by the latest version of its model, allowing users to create Ghibli-style images. This update is available for free users, expanding access to creative tools in generative AI. The move aims to enhance user engagement and creativity within the platform.