From ELIZA to ChatGPT: The Evolution of Natural Language Processing and Financial Applications

Abstract

Natural language processing (NLP) has revolutionized the financial industry, providing advanced techniques for the processing, analyzing, and understanding of unstructured financial text. The authors provide a comprehensive overview of the historical development of NLP, starting from early rules-based approaches to recent advances in deep learning–based NLP models. They also discuss applications of NLP in finance along with its challenges, including data scarcity and adversarial examples, and speculate about the future of NLP in the financial industry. To illustrate the capability of current NLP models, a state-of-the-art chatbot is employed as a co-author of this article.