You are also welcome to join remotely via the provided Zoom link: https://gatech.zoom.us/j/94124160317

The abstract is included below, and copies of the proposal are available upon request.

Charles (Charley) Irons, CPA

Accounting PhD Student

Georgia Institute of Technology | Scheller College of Business

Area: Accounting

Committee Members: Dr. Robbie Moon (Chair), Dr. Justin Blann, Dr. Eric Condie, Dr. Jonathan Shipman (University of Arkansas), Dr. Teri Yohn (Emory University)

Title: The Influence of AI-Like Text on Responses to Disclosure: Evidence from AI Detection Models

Abstract:

The recent rise of ChatGPT and other generative AI models has revolutionized machine-generated text. One potential application of this technology is aiding in crafting firms’ narrative disclosures. Using two different, highly rated, commercially available AI detection models, I create novel measures of AI-like text in disclosure based on AI detection models’ classification that the text was generated either wholly or in part by AI. Using these measures, I study changes in disclosure surrounding the release of ChatGPT-4.0 in early 2023 and document a significant increase in the incidence of AI-like text in earnings conference call prepared remarks but not in managers’ responses to questions. Further evidence suggests that AI-like text in disclosure is more common among smaller, younger firms, and, on average, exhibits more positive tone, less uncertainty, and more forward-looking statements than non-AI-like disclosure text. I then compare the market responses to linguistic measures from AI-like disclosure text and non-AI-like disclosure text. Contrary to other studies that find generative AI text to be of higher quality and more persuasive than human text, my evidence suggests that tone in non-AI-like disclosure text is more strongly associated with returns. Overall, my results suggest that AI-like text may mute responses to information in disclosure.