Next Boston QWAFAFEW Meeting: Jun 15, 2021, 7:00PM ET
From Man vs. Machine to Man + Machine: The Art and AI of Stock Analyses
A QWAFAFEW discussion led by,
Baozhong Yang, PhD
An AI analyst we build to digest corporate financial information, qualitative disclosure, and macroeconomic indicators is able to beat the majority of human analysts in stock price forecasts and generate excess returns compared to following human analysts. In the contest of “man vs machine,” the relative advantage of the AI Analyst is stronger when the firm is complex, and when information is high-dimensional, transparent and voluminous. Human analysts remain competitive when critical information requires institutional knowledge (such as the nature of intangible assets). The edge of the AI over human analysts declines over time when analysts gain access to alternative data and to in-house AI resources. Combining AI’s computational power and the human art of understanding soft information produces the highest potential in generating accurate forecasts. Our paper portraits a future of “machine plus human” (instead of human displacement) in high-skill professions.
Baozhong Yang is the H. Talmage Dobbs Jr Chair in Finance and Associate Professor of Finance at the J. Mack Robinson College of Business in Georgia State University. He is also the Director of the FinTech Lab at the Robinson College, one of the first such labs associated with a business school in the nation. He has co-organized the annual GSU-RFS FinTech Conferences, a leading FinTech conference that offers dual submission to the premier journal Review of Financial Studies. Professor Yang’s research has been published in leading journals, including the Journal of Finance, Journal of Financial Economics, Review of Financial Studies, Journal of Accounting Research, Management Science, Mathematics of Operations Research, IEEE Computer, and Advances in Mathematics. Professor Yang holds a Ph.D. in Finance from Stanford University and a Ph.D. in Mathematics from MIT.
(Full bio available at https://sites.google.com/view/baozhongyang/cv-biography)
Time: 7:00 PM sharpe
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