mlsanityData to 7 Oct 2026

Your AI, Not Your View: The Bias of LLMs in Investment Analysis

arXiv 2507.20957 ↗First posted 28 Jul 2025q-fin.PM cs.AI cs.CLcited by 16

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Abstract (arXiv)

In finance, Large Language Models (LLMs) face frequent knowledge conflicts arising from discrepancies between their pre-trained parametric knowledge and real-time market data. These conflicts are especially problematic in real-world investment services, where a model's inherent biases can misalign with institutional objectives, leading to unreliable recommendations. Despite this risk, the intrinsic investment biases of LLMs remain underexplored. We propose an experimental framework to investigate emergent behaviors in such conflict scenarios, offering a quantitative analysis of bias in LLM-based investment analysis. Using hypothetical scenarios with balanced and imbalanced arguments, we extract the latent biases of models and measure their persistence. Our analysis, centered on sector, size, and momentum, reveals distinct, model-specific biases. Across most models, a tendency to prefer technology stocks, large-cap stocks, and contrarian strategies is observed. These foundational biases often escalate into confirmation bias, causing models to cling to initial judgments even when faced with increasing counter-evidence. A public leaderboard benchmarking bias across a broader set of models is available at https://linqalpha.com/leaderboard

Key facts. Cited by 16 papers in the map (data through 7 Oct 2026). Builds on 14 of its 31 references that are in the map. First posted on arXiv 28 Jul 2025.

Builds on

14 of 31 references.

References · 14

  1. 2025Qwen3 Technical Reportcited by 8,195
  2. 2023Adaptive Chameleon or Stubborn Sloth: Revealing the Behavior of Large Language Models in Knowledge Conflictscited by 333
  3. 2024TradingAgents: Multi-Agents LLM Financial Trading Frameworkcited by 182
  4. 2024Large Language Models are Inconsistent and Biased Evaluatorscited by 146
  5. 2024A Multimodal Foundation Agent for Financial Trading: Tool-Augmented, Diversified, and Generalistcited by 137
  6. 2024Do I Know This Entity? Knowledge Awareness and Hallucinations in Language Modelscited by 114
  7. 2024FinCon: A Synthesized LLM Multi-Agent System with Conceptual Verbal Reinforcement for Enhanced Financial Decision Makingcited by 112
  8. 2024Cognitive Bias in Decision-Making with LLMscited by 104
  9. 2024Tug-of-War Between Knowledge: Exploring and Resolving Knowledge Conflicts in Retrieval-Augmented Language Modelscited by 93
  10. 2024Blinded by Generated Contexts: How Language Models Merge Generated and Retrieved Contexts When Knowledge Conflicts?cited by 47
  11. 2024LLM economicus? Mapping the Behavioral Biases of LLMs via Utility Theorycited by 44
  12. 2025Decision-informed Neural Networks with Large Language Model Integration for Portfolio Optimizationcited by 14
2 more
  1. 2024Are LLMs Rational Investors? A Study on Detecting and Reducing the Financial Bias in LLMscited by 7
  2. 2025Exposing Product Bias in LLM Investment Recommendationcited by 6

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Cited by year (2026 to 7 Oct)

Citing papers per year: 2025: 2; 2026: 14.

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  1. 2026Evaluating LLMs in Finance Requires Explicit Bias Considerationcited by 11
  2. 2026Toward Expert Investment Teams:A Multi-Agent LLM System with Fine-Grained Trading Taskscited by 7
  3. 2026Can Blindfolded LLMs Still Trade? An Anonymization-First Framework for Portfolio Optimizationcited by 4
  4. 2026TrustTrade: Human-Inspired Selective Consensus Reduces Decision Uncertainty in LLM Trading Agentscited by 3
  5. 2025Uncovering Representation Bias for Investment Decisions in Open-Source Large Language Modelscited by 2
  6. 2026When Summaries Distort Decisions: Information Fidelity in LLM-Compressed Financial Analysiscited by 2
  7. 2025THEME: Enhancing Thematic Investing with Semantic Stock Representations and Temporal Dynamicscited by 1
  8. 2026CyBiasBench: Benchmarking Bias in LLM Agents for Cyber-Attack Scenarioscited by 1
  9. 2026Auditing Asset-Specific Preferences in Financial Large Language Models: Evidence from Bitcoin Representations and Portfolio Allocationcited by 1
  10. 2026Seeing the Goal, Missing the Truth: Human Accountability for AI Biascited by 0
  11. 2026MemGuard-Alpha: Limits of Membership Inference for Detecting and Filtering Memorization-Contaminated Signals in LLM-Based Financial Forecastingcited by 0
  12. 2026Fund2Persona: A Framework for Building and Refining Financial Advisor Personas from Fund Disclosure Datacited by 0
4 more
  1. 2026Your AI, On a Dial: Controlling Investment Bias in LLMs with a Single Neuroncited by 0
  2. 2026Poisoning Agentic Alpha: Adversarial Vulnerabilities Across Roles and Architectures in Multi-Agent Trading Systemscited by 0
  3. 2026The Analyst in the Prompt: Role, Retrieval, and Memory Biases in LLM Financial Analysiscited by 0
  4. 2026FinAutoRubric: Expert-Guided Automatic Rubric Generation for Evaluating Financial Research Agentscited by 0