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October 20, 2021 10:40 pm
Original Link: http://rss.slashdot.org/~r/Slashdot/slashdot/~3/fXy1YfZxU2c/investors-use-ai-to-analyze-ceos-language-patterns-and-tone
Investors Use AI To Analyze CEOs' Language Patterns and Tone
CEOs and other managers are increasingly under the microscope as some investors use artificial intelligence to learn and analyze their language patterns and tone, opening up a new frontier of opportunities to slip up. Reuters reports: In late 2020, according to language pattern software specialist Evan Schnidman, some executives in the IT industry were playing down the possibility of semiconductor chip shortages while discussing supply-chain disruptions. All was fine, they said. Yet the tone of their speech showed high levels of uncertainty, according to an algorithmic analysis designed to spot hidden clues in -- ideally unscripted -- spoken words. "We found that IT sector executives' tone was inconsistent with the positive textual sentiment of their remarks," said Schnidman, who advises two fintech companies behind the analysis. Within months of the comments, companies including Volkswagen and Ford were warning about a severe shortage of chips hitting output. Share prices in auto and industrial firms fell. IT executives now said there was a supply squeeze. Schnidman holds that computer-driven quant funds accessing scores assigned to the tone of the managers' words, versus scores assigned to the written words, would have been better positioned before the industry turmoil. Some investors nonetheless see the technology -- known as natural language processing (NLP) -- as one new tool to gain an edge over rivals, according to Reuters interviews with 11 fund managers that are using or trialling such systems. They say traditional financial data and corporate statements are so heavily mined nowadays that they offer little value.Read more of this story at Slashdot.
Original Link: http://rss.slashdot.org/~r/Slashdot/slashdot/~3/fXy1YfZxU2c/investors-use-ai-to-analyze-ceos-language-patterns-and-tone
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