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 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.