As AI tools become more powerful, the ability to interpret and question their outputs is more important than ever. That’s why we are proud to spotlight Zhongtian Chen, Assistant Professor of Finance, Investment, and Banking, whose research and teaching help prepare Wisconsin School of Business students to lead confidently in an AI-driven future.
From Mathematics to Machine Learning
Zhongtian’s academic journey began at Renmin University of China, where he studied mathematics and minored in economics. He went on to earn his Master of Science in Finance at the same institution and simultaneously earned a Master of Arts in Economics at Duke University, preparing to pursue his goal of conducting research in the United States.
Upon being admitted to the Wharton PhD program for finance, Zhongtian narrowed his focus to behavioral finance, asset pricing, and machine learning. His draw to behavioral finance was shaped in part by his own experience as an investor, where he became curious about loss aversion, investor decision making and how mistakes happen.
Additionally, Zhongtian’s interest in AI runs deep, stemming from his pre-undergrad experimentation with coding and machine learning. Following both a personal interest and intuition of AI’s increasing relevance, Zhongtian prioritized being equipped with AI proficiency.
Bridging AI and Human Behavior
Zhongtian’s research blends his two primary interests, behavioral finance and artificial intelligence, in a way that introduces unique applications. He asks, “Instead of using machine learning to predict future stock market prices, why don’t we use them to understand and predict what the investor will do next?” By applying machine learning models that mimic the human brain and human decision making, he studies how memory, attention, and past experiences shape an investor’s decisions.
Currently, Zhongtian is collaboratively conducting research that is investigating a shift in the way people consume information today. With younger generations increasingly turning to platforms like TikTok and YouTube for investment advice and information about the stock market, a range of new factors that influence memory and belief formation are introduced. Video content couples investment information with dimensions of tone, emotion, and visual cues in a way that it has never been accompanied with before in the traditionally relied upon text format. This shift in technology and societal norms indicates opportunity for expansion within Zhongtian’s research focus. Using tools to create AI-generated videos, he can easily isolate and manipulate video element variables, such as the gender, race or energy level of the speaker, to better understand how each individually influences belief formation and behavior regarding investing.
Teaching AI in the Classroom
When teaching the MSBA students, Zhongtian draws on his experience blending various machine learning model applications to teach the mechanics of going beyond surface-level use. “I want my students to know more than just how to use machine learning models but understand the mechanisms behind them, the story of how they work,” he emphasizes. This approach sets students up for success in such a rapidly changing field, empowering them to view new challenges with confidence.
Along with advising students on how to strategically select machine learning models for their use case, Zhongtian also encourages them to keep pace with the daily updates and changes that surface, noting: “I want students to learn from the class how to master those tools, and how to understand those tools. In their final projects, they work in teams to solve real business problems using machine learning, with flexibility to experiment directly with emerging tools. I encourage them to explore what they really like and other machine learning models in their final projects.”
Preparing Students to Lead in an AI-Driven Future
Strong leaders rely on both technical skills and the ability to adapt in an evolving field, which is Zhongtian’s hope for the ability of his students beyond the classroom. He emphasizes that critical thinking remains essential, even as AI tools become more powerful. “In my class, I encourage them to use AI to write up the code, but does the code give you the right answer or not? Really up to you, you need to make the judgement call,” he shares, highlighting the adjunct role AI plays in a business professional’s work. His advice for students is simple and consistent and how he approaches his own research. “Keep learning, I’m learning everyday.”
With gratitude for his dedication, we celebrate Zhongtian’s work in empowering students to think critically, act strategically, and lead responsibly!
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