Finance Theory in the Era of Generative AI

The rapid development of generative artificial intelligence (GAI) is profoundly changing the operational logic of the financial industry. From information acquisition, investment decision-making, and risk management to financial service innovation, GAI is gradually becoming an important participant in the financial system. Traditional financial theory is mainly based on the information interaction between human investors, financial institutions, and market participants, while the emergence of GAI has led the financial market into a stage of "human-AI collaborative decision-making." This paper systematically analyzes the impact of GAI on the financial system, proposes "Generative AI Finance Theory (GAIFT)," constructs a theoretical framework consisting of an information generation layer, a cognitive enhancement layer, a decision-making collaboration layer, and a value creation layer, and explores future development trends in the financial market. The study argues that GAI is not only a new financial tool but also has the potential to become the core cognitive infrastructure in the future financial ecosystem, thereby propelling financial theory into a new stage of development.