Review of Effects of GenAI on Firm Values and Finance Research

How should investors think about potential shocks  to firm valuations and financial markets research from generative artificial intelligence (GenAI)? In their October 2024 paper entitled “AI and Finance”, Andrea Eisfeldt and Gregor Schubert review the literature on the effects of GenAI on (1) firm valuations and (2) financial research methods. They also offer an introduction to available GenAI research tools and advice on using these tools. Based on the body of research, they conclude that:

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