How can Artificial Intelligence (A.I.) help analysts uncover hidden issues in an Earnings Call Transcript?
This morning, MarketWatch published a story about how investors who watched General Electric’s (GE) quarterly earnings could have seen its current troubles coming. If this was true, the business teams at GE should have seen the same and changed course. After all, GE authored the presentation. Perhaps the problem is perspective.
(Screenshot image source: https://www.marketwatch.com/story/investors-who-paid-attention-to-ges-accounting-saw-trouble-coming-2018-06-25)
A year ago, when we picked up a copy of Oracle’s earnings call statement and ran it through our A.I. system, we saw a story that was different from the analysts who attended the conference call.
A year ago, when we picked up a copy of IBM’s earnings call transcript and ran it through our A.I. system, we saw an IBM that would not grow much in the next 12 months while some analysts who follow IBM saw a different story.
Eight months ago, we did the same with Caterpillar’s earnings call and, through the eyes of our A.I. system, saw that the discussion of China sales was not realistic. In recent months, the stock price has descended.
These are not isolated events. We also found compelling insights in analyzing geopolitical events, IPOs, shifting industry trends, and multi-billion merger & acquisitions (M&A).
This is the power of deductive reasoning. As opposed to the use of inductive reasoning in A.I./Machine Learning such as Bayesian or Markov statistics, deductive reasoning examines a particular instance and uses it to find reasons to either accept or reject the premise. This approach is missing from many prevailing Unstructured Text Analytics.
Autonomous Learning: a new A.I. for textual data
Our team timestamped and published these examples over 12 months ago. These A.I. analyses were published in partnership with investment blogs and public media for compare and contrast. The power of our approach to A.I. textual analytics is called Autonomous Learning. It is available and delivered by SiteFocus as a self-contained on-premise solution that runs on an Intel NUC appliance for edge computing. Enterprises of all size can lease this solution for less than the payroll of a minimum wage earner and realize exponential ROI.
For more information please contact SiteFocus for details. Questions or comments? Visit our website for more information, reach out, connect with me, or follow me on Twitter.