Investors, Companies Capitalize on AI-Parsed Financial Filings
Investors, Companies Capitalize on AI-Parsed Financial Filings
Publish Date: 2026-05-26 05:00:00
Source Domain: news.bloomberglaw.com
AI models are helping investors speed up analysis of lengthy corporate filings while savvy companies are exploiting the weaknesses of the new tools.
Investors are using artificial intelligence models to speed up research, easing the laborious process of comparing documents across years to find changes in information. Some companies, meanwhile, are drafting their filings in a way that AI models would be more likely to miss or downplay information that executives don’t want to highlight.
The Securities and Exchange Commission under the Trump administration has contended that required corporate filings such as annual financial reports can be far too long with details that are insignificant to investors. Chairman Paul Atkins is mulling curtailing executive compensation and risk factor disclosures.
Investors are using tools like OpenAI’s ChatGPT or Anthropic’s Claude Opus; some are also using specialized AI tools for financial analysis.
Information previously could be buried deep in a corporate document, making it opaque, said Wesley Gray, CEO of Alpha Architect, an asset management firm. “But now everyone has a supercomputer.”
Regardless of how AI is used by investors, SEC officials say shortened disclosures can serve a broader purpose: giving companies incentives to go public and stay in the market amid a decades-long slump in the number of public businesses.
The SEC is trying to ensure disclosures “are useful and not overwhelming,” said Joshua White, chief economist and director of the agency’s Division of Economic and Risk Analysis, in a statement.
“One thing we have to keep in mind is disclosures are not costless to produce for companies,” White said. “It not only takes the time to produce it, you have to verify it, you have to stand behind what it says.”
Faster Tools
For decades, investors had to “control-F” their way through a corporate filing to find information, said Corey Hammill, senior vice president of financial data at AlphaSense, a…
