Do LLM Personas Dream of Bull Markets? Comparing Human and AI Investment Strategies Through the Lens of the Five-Factor Model

TL;DR

It is found that LLM persona with a specific Big Five personality profile are able to generalise traits into expected behaviours in three areas: learning style, impulsivity and risk appetite while environmental attitudes could not be accurately represented.

Abstract

Large Language Models (LLMs) have demonstrated the ability to adopt a personality and behave in a human-like manner. There is a large body of research that investigates the behavioural impacts of personality in less obvious areas such as investment attitudes or creative decision making. In this study, we investigated whether an LLM persona with a specific Big Five personality profile would perform an investment task similarly to a human with the same personality traits. We used a simulated investment task to determine if these results could be generalised into actual behaviours. In this simulated environment, our results show these personas produced meaningful behavioural differences in all assessed categories, with these behaviours generally being consistent with expectations derived from human research. We found that LLMs are able to generalise traits into expected behaviours in three areas: learning style, impulsivity and risk appetite while environmental attitudes could not be accurately represented. In addition, we showed that LLMs produce behaviour that is more reflective of human behaviour in a simulation environment compared to a survey environment.

Figures (6)

• Figure 1: Relationship between personality traits and learning style
• Figure 2: Relationship between personality traits and impulsive decision making
• Figure 3: Relationship between personality traits and risk appetite
• Figure 4: Relationship between personality traits and an interest in environmental products
• Figure 5: Relationship between personality traits and investment in environmental products