The use of ChatGPT is making it increasingly difficult for corporations to mislead investors, according to Joachim Klement, a strategist and blogger at Liberum. He suggests that the more analysts and investors utilise this app for not only transcribing but also summarising earnings calls, the better informed they’ll be. Klement bases his argument on a study, which employed ChatGPT to condense thousands of annual reports and conference calls. The research revealed that these discussions could feasibly be reduced by as much as 75% without loss of significant information.
The findings also indicated that information overload, or “bloated disclosures”, can inadvertently obscure critical details from investors. Nevertheless, AI-generated summaries, like those produced by ChatGPT, can help cut through this surplus information or “clutter”. These concise summaries simplify the process of distinguishing companies with potentially good or bad updates. Klement further believes that ChatGPT, along with other AI systems, enable standard analysts and investors to filter out insignificant details and resist being influenced by the charisma of CEOs.