InvestAlign fine-tunes LLMs on datasets generated from closed-form solutions of a simplified optimal investment problem, improving alignment with real investor decisions under herd behavior by 45-61% in MSE.
Next-Generation Simulation Illuminates Scientific Problems of Organised Complexity
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abstract
As artificial intelligence becomes increasingly prevalent in scientific research, data-driven methodologies appear to overshadow traditional approaches in resolving scientific problems. In this Perspective, we revisit a classic classification of scientific problems and acknowledge that a series of unresolved problems remain. Throughout the history of researching scientific problems, scientists have continuously formed new paradigms facilitated by advances in data, algorithms, and computational power. To better tackle unresolved problems, especially those of organised complexity, a novel paradigm is necessitated. While recognising that the strengths of new paradigms have expanded the scope of resolvable scientific problems, we aware that the continued advancement of data, algorithms, and computational power alone is hardly to bring a new paradigm. We posit that the integration of paradigms, which capitalises on the strengths of each, represents a promising approach. Specifically, we focus on next-generation simulation (NGS), which can serve as a platform to integrate methods from different paradigms. We propose a methodology, sophisticated behavioural simulation (SBS), to realise it. SBS represents a higher level of paradigms integration based on foundational models to simulate complex systems, such as social systems involving sophisticated human strategies and behaviours. NGS extends beyond the capabilities of traditional mathematical modelling simulations and agent-based modelling simulations, and therefore, positions itself as a potential solution to problems of organised complexity in complex systems.
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cs.CL 1years
2025 1verdicts
CONDITIONAL 1representative citing papers
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InvestAlign: Overcoming Data Scarcity in Aligning Large Language Models with Investor Decision-Making Processes under Herd Behavior
InvestAlign fine-tunes LLMs on datasets generated from closed-form solutions of a simplified optimal investment problem, improving alignment with real investor decisions under herd behavior by 45-61% in MSE.