The use of AI in 10-K Filings

The use of AI in 10-K Filings

• Autor
• Marcelo S. Perlin
• Co-autores
• Cristian R. Foguesatto , Aliki K. Galanos , Felipe Affonso
• Resumo

• With the rise of AI use in corporate settings and the associated risks to disclosure quality and credibility, we examine whether organizations rely on AI-assisted writing in their annual reports. Using Desklib’s Large Language Model and FinBERT, we estimate the probability of AI-generated content and analyze sentiment across three sections of 10-K reports from S&P 500 firms between 2018 and 2024. Results indicate a relatively stable use of AI over time, with distinct patterns across sections, with the Management Discussion and Analysis showing the highest probability of AI adoption. Younger and smaller firms are more likely to rely on AI-assisted writing. We also find a strong positive association between sentiment scores and AI detection, particularly in the Risk Factors section. These findings provide insights for researchers and important implications for investors and policymakers regarding this emerging organizational practice.

• Palavras-chave
• Corporate Finance, 10-K Filings, Large Language Models (LLMs), Artificial Intelligence
• Modalidade
• E-pôster
• Área Temática
• Finanças Corporativas e Bancárias

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