Generative AI in Capital Markets: Information Production, Dissemination, and Processing

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Authors: Sean Cao, Wilbur Xinyuan Chen, Guang Ma, Suraj Srinivasan
Cited by: 7
References: 43

Abstract

ABSTRACT We synthesize evidence from six papers presented at the 2025 Journal of Accounting Research Conference on how generative artificial intelligence (GenAI) is reshaping capital‐market information flows. Our discussion is organized around an economic framework with three layers: information production by firms and accounting professionals, information dissemination through intermediaries, and information processing by investors. Across these layers, the conference papers show that GenAI can lower preparation costs, improve intermediary productivity, and reduce investors’ processing costs. At the same time, they point to a common constraint: whether GenAI improves the information environment depends critically on information verification costs. We also highlight gaps in current evidence and outline future research opportunities within and across the three layers.

Fields of Study & Subjects

Stock Market Forecasting Methods Auditing Earnings Management Governance Explainable Artificial Intelligence (XAI)

Publication details

Journal / source
Journal of Accounting Research
Publisher
Wiley
Volume
64
Issue
3
Pages
1427–1450
Publication date
22 April 2026
Language
EN