I believe Amazon will be impacts by this trend and I think for the better. b As
noted in the article, having to read hundreds of pages of filings for multiple
firms in order to compare apples to apples data, can lead to burnout and lower
the quality of research. b It seems like New Constructs went about perfecting
their tool in a really smart way by having a human analyst first tag all the data
points for the program to analyze. b b As the machine-learning algorithm learns
how to parse more and more data, b there is less need for the human analyst to
assist. b As we're working through our projects, I'm sure everyone can agree
these 10Ks are pages and pages of information with so many tables for
different entities. b My first thought before reading the article was that it can't
possibly be an improvement to have a machine analyzing such complex data
with all the footnotes involved. b But as noted, humans analyzing this volume
of data can become fatigued and the quality of research can suffer. b b The
company has clearly put forth a rigorous training program for their human
analysts to ensure high-quality results.
Reference
Wang, C., & Thomas, K. (2021, June 25). New Constructs: Disrupting
Fundamental Analysis with Robo-Analysts (No. 9–118–068). Harvard
Business School. https://services.hbsp.harvard.edu/lti/links/content-launch
