AI Study Says Sometimes It’s Good When Executives Act Like Robots

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AI Study Says Sometimes It’s Good When Executives Act Like Robots
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Researchers compared executives' answers on earnings calls to answers written by AI. The more executives acted like robots, the less the stock price changed.

Once a quarter, publicly traded corporations have an earnings call to let investors know how the company is doing. You usually hear from the CEO and Chief Financial Officer, and after the executives give their spiel at an earnings call, the floor is open for questions. Sometimes, they add new information, but usually,

corporate leaders just dodge questions and refer back to points they made in their prepared speeches.ChatGPT could do part of that job; after all, analyzing and regurgitating things other people already said is a chatbot specialtySo, researchers at Northeastern University’s D’Amore-McKim School of Business set out to compare executives’ earnings call chops to ChatGPT and other large language model AI tech.

The researchers found that a lot of the time, the human’s answers were pretty similar to what the AI spit out, with no new information. But sometimes the executives added more detail. The study then compared how stock prices behaved after the earnings calls. Essentially, when executives gave less robotic answers with more new information, the effect on the company’s stock was more dramatic.So should you just have the robots replace the “human” executives running the earnings call? Bloomberg columnist Matt Levine hadearnings are bad you should have ChatGPT do your earnings call, but if they’re good you should do it yourself.”

If you’ve got good news, letting the humans do their thing and give more details could juice your numbers. When times are tough, you might consider passing the mic to a tight-lipped AI. Chances are no one will be able to tell the difference anyway.

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