Authors: Alex Kim, Maximilian Muhn, Valeri Nikolaev

Published on: June 17, 2023

Impact Score: 8.22

Arxiv code: Arxiv:2306.10224

Summary

• What is new: Generative AI tools like ChatGPT offer a novel approach to summarizing complex corporate disclosures, emphasizing the change in sentiment amplification and the introduction of an ‘information bloat’ measure.
• Why this is important: The challenge in processing lengthy and complex corporate disclosures efficiently, which can hinder understanding and reaction to stock market information.
• What the research proposes: Using generative AI tools to create concise summaries of corporate disclosures that amplify the document’s sentiment, enhancing the efficiency of stock market information processing.
• Results: Summaries made with generative AI tools are not only shorter but amplify the sentiment of the original documents and are more effective at explaining stock market reactions. They also highlight issues of ‘information bloat’ which is linked to negative market impacts.

Technical Details

Technological frameworks used: Generative AI, specifically language models similar to ChatGPT

Models used: Sentiment analysis, stock market reaction modeling

Data used: Corporate disclosures, stock market data

Potential Impact

Financial analytics services, investment firms, and regulatory agencies could be significantly impacted, as these insights and tools could streamline their operations and decision-making processes.

Want to implement this idea in a business?

We have generated a startup concept here: SummarAIze Investments.