Will AI spell doom for equity analysts? JPMorgan’s Jay Hollein told the New York Times last month that cutting various tasks from 10 hours to 10 seconds would “make work more interesting.” I said it, but it’s not true.
This is echoed by BNY Mellon, which said in February that AI efficiencies could cause analysts to wake up two hours later (6 a.m. instead of 4 a.m., lucky). Ta.
But a new study, “Can AI replace equity analysts?” suggests analysts should be afraid.
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Indeed, stock research is more than just crunching numbers; analysts bring “intuition, experience, and understanding of market trends that cannot be replicated by machines.” Nevertheless, AI models running on inexpensive computers can generate large amounts of data in “a fraction of the time and cost” (15 hours and $2.50 in electricity) compared to human analysts. can be processed.
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Analysts are therefore unlikely to be happy that an AI model outperformed analysts by a “significant amount” in predicting stock prices one year from now. Human intuition and experience are no match for AI’s “pure processing and data analysis capabilities,” and AI “could potentially replace human analysts in certain aspects of predicting financial performance.” It is shown that.
