The study also found that when executives provided less robotic answers with more new information, there was a more dramatic effect on the company's stock prices. This led to the suggestion that if earnings are good, human executives should handle the call, but if they're bad, it might be better to let an AI like ChatGPT handle it. The reasoning is that humans can provide more detail and potentially boost stock prices when the news is good, while an AI can maintain a tight-lipped approach during tough times.
Key takeaways:
- A new study compared the responses of AI chatbots and human executives during corporate earnings calls, finding that their answers were often similar.
- Researchers trained AI on prepared remarks from earnings calls and had chatbots answer the same investor questions posed to executives.
- When executives provided less robotic answers with more new information, there was a more dramatic effect on the company's stock prices.
- Bloomberg columnist Matt Levine suggested that if earnings are bad, companies should have AI like ChatGPT conduct the earnings call, but if they're good, the executives should handle it themselves.