Good morning. Analysts and investors increasingly are using generative AI to review earnings calls, but new research suggests large language models (LLMs) may soon become powerful tools for stock selections.
For many years, financial sentiment analysis relied on simple word lists. Take for instance, on an earnings call, that would mean counting a CEO or CFO’s positive phrases like “strong growth” and negative ones like “unexpected losses”—to assign a sentiment score. This rules-based system was transparent and easy to explain.
