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Sweet-talking CEOs are starting to outsmart the robot analysts

Company executives have started to adapt their statements and even their delivery to cater to the algorithms parsing text and speech for trading signals, researchers at Georgia State University and Columbia University have found. Managers are emphasizing positivity and avoiding words or phrases known to be perceived by machines as negative.

“Increasing AI readership motivates firms to prepare filings that are more friendly to machine parsing and processing,” a team of academics argues in a new paper. “Technological progress and the sheer volume of disclosure make the trend inevitable.”

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algos, capital markets, banking, earnings