Generative AI, Managerial Expectations, and Economic Activity

Fuente: arXiv
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Autori principali: Jha, Manish, Qian, Jialin, Weber, Michael, Yang, Baozhong
Natura: Preprint
Pubblicazione: 2024
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author Jha, Manish
Qian, Jialin
Weber, Michael
Yang, Baozhong
author_facet Jha, Manish
Qian, Jialin
Weber, Michael
Yang, Baozhong
contents We use generative AI to extract managerial expectations about their economic outlook from 120,000+ corporate conference call transcripts. The resulting AI Economy Score predicts GDP growth, production, and employment up to 10 quarters ahead, beyond existing measures like survey forecasts. Moreover, industry and firm-level measures provide valuable information about sector-specific and individual firm activities. A composite measure that integrates managerial expectations about firm, industry, and macroeconomic conditions further significantly improves the forecasting power and predictive horizon of national and sectoral growth. Our findings show managerial expectations offer unique insights into economic activity, with implications for both macroeconomic and microeconomic decision-making.
format Preprint
id arxiv_https___arxiv_org_abs_2410_03897
institution arXiv
publishDate 2024
record_format arxiv
spellingShingle Generative AI, Managerial Expectations, and Economic Activity
Jha, Manish
Qian, Jialin
Weber, Michael
Yang, Baozhong
Computational Finance
Machine Learning
General Economics
Economics
We use generative AI to extract managerial expectations about their economic outlook from 120,000+ corporate conference call transcripts. The resulting AI Economy Score predicts GDP growth, production, and employment up to 10 quarters ahead, beyond existing measures like survey forecasts. Moreover, industry and firm-level measures provide valuable information about sector-specific and individual firm activities. A composite measure that integrates managerial expectations about firm, industry, and macroeconomic conditions further significantly improves the forecasting power and predictive horizon of national and sectoral growth. Our findings show managerial expectations offer unique insights into economic activity, with implications for both macroeconomic and microeconomic decision-making.
title Generative AI, Managerial Expectations, and Economic Activity
topic Computational Finance
Machine Learning
General Economics
Economics
url https://arxiv.org/abs/2410.03897