Economics and machine learning (ML) researchers at Columbia and Georgia State universities found artificial intelligence is causing companies to change how they communicate.
Natural language processing is being used to parse and process text in the financial documents public companies must submit to the U.S. Securities and Exchange Commission (SEC), while ML tools are used abstract text or rate the language used as positive, neutral, or negative.
Signals provided by these tools inform advisers, analysts, and investors' decisions, and machine downloads are associated with faster trading after the posting of an SEC filing.
According to a paper written by the researchers, "Anecdotal evidence suggests that executives have become aware that their speech patterns and emotions, evaluated by human or software, impact their assessment by investors and analysts."
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Abstracts Copyright © 2020 SmithBucklin, Washington, DC, USA
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