Why Man + Machine Adds Up to Better Stock Picks
New research from Sean Cao at the University of Maryland’s Smith School shows that AI and human stock analysts complement each other. AI excels in processing large data, while humans outperform in complex, intangible contexts. Combining both reduces errors and improves predictions.
“From Man vs. Machine to Man + Machine: The Art and AI of Stock Analyses,” forthcoming in Journal of Financial Economics*
An AI analyst trained to digest corporate disclosures, industry trends, and macroeconomic indicators surpasses most analysts in stock return predictions. Nevertheless, humans win ‘‘Man vs. Machine’’ when institutional knowledge is crucial, e.g., involving intangible assets and financial distress. AI wins when information is transparent but voluminous. Humans provide significant incremental value in ‘‘Man + Machine’’, which also substantially reduces extreme errors. Analysts catch up with machines after ‘‘alternative data’’ become available if their employers build AI capabilities.
New Textbook Gives Businesses a Roadmap for Using AI
Smith School professor Sean Cao, director of the AI Initiative for Capital Market Research, has authored a free textbook on AI for accounting and finance. The book simplifies AI learning by focusing on data application rather than programming, making AI accessible to business students.
All in on AI
The Robert H. Smith School of Business at the University of Maryland is pioneering AI education to meet rising industry demand. The school's new AI center and specialized programs prepare students to address business challenges with AI, ensuring graduates' market relevance.
Smith Secures $150K for AI Initiative for Capital Market Research
GRF CPAs & Advisors has awarded $150,000 to the University of Maryland’s Robert H. Smith School of Business to seed an AI Initiative for Capital Market Research.
AI-Powered Pricing: Does It Make the Buying Experience More Fair and Equitable?
Retailers have been using artificial intelligence for a while now. There’s the rudimentary use of it to send out enticing email promotions or timely online ads that we welcome at times and find annoying at others. But retailers are also using AI to track consumers’ behavior both online and in brick-and-mortar stores. The technology is helping guide store layout, inventory levels, and pricing.
Smith School Awards 14 Faculty Grants for Innovative Research
Fourteen faculty teams at the University of Maryland’s Robert H. Smith School of Business have been awarded three-year grants from the school for research projects that address the world’s grand challenges and reimagine learning in support of the University of Maryland’s vision and the Smith School’s strategic plan.