arXiv AI By Jian Xue, Qian Zhang, Wu Zhu

Generative AI for Analysts

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The paper examines how generative AI (GenAI) changes the way financial analysts produce information, using the 2023 integration of GenAI into FACTSET as a natural experiment. It finds that FACTSET reports become richer—adding 26% more distinct sources, 24% broader topics, and 21% more analytical methods—while also being more timely. However, the increased information load leads to lower forecast accuracy for analysts, suggesting a human attention bottleneck, whereas a machine-learning benchmark does not suffer the same decline.

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