🗞 4 Best Ways to Use AI for Investment Research

Last week, OpenAI launched 62 domain-specific plugins for ChatGPT and Codex.

Fiscal.ai was proud to be one of them.

With the Fiscal.ai Plugin, ChatGPT and Codex users get high-quality structured financial data integrated seamlessly into their AI workflows.

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4 Best Ways to Use AI for Investment Research

With our data connector now live, it inspired us to publish a piece on how we’re seeing investors leverage AI.

Fiscal.ai is home to more than 350,000 individual & institutional clients, so we’re fortunate to get a firsthand view into how investors are actually integrating AI models into their research processes.

Here are 4 of the most common (and effective) ways we’ve seen:

1. Equity Research Reports

Going from zero to one on a company has never been easier.

Many investors we’ve spoken to have built a Research Report Skill (a “skill” or “project” is just a reusable set of instructions saved in your AI model of choice) to get up to speed on new ideas quickly.

You can customize your prompt to be as thorough as you’d like. If you want one out of the box, Fiscal.ai has a ready-made research prompt (you can find it here), that will give you a thorough, ~2,000 word preliminary research report in minutes.

The report includes:

• Business Overview & History

• Competitive Landscape

• Financial Snapshot/Unit Economics

• Current Narrative (What’s driving recent price action?)

• Management & Compensation

And much more.

2. Financial Modeling

Every investor has a different way of modeling.

Some investors like to keep it simple with only a few years of historical data and a few forward-looking assumptions.

For example: “Build me an excel model for Adobe. I think revenue will grow at 8% per year, operating margins will expand to 40%, and share count will decrease by 5% annually. Give me 5 years of historical data and 5 years forward.”

While other investors might prefer extremely detailed models with virtually every metric embedded.

If you’re in the latter camp, I recommend testing out Fiscal.ai’s Financial Modeling Skill for an out-of-the-box 3-statement model. This is a pre-set prompt that creates an extremely detailed .xlsx file that you can then edit to include your own assumptions.

The Fiscal.ai Plugin also has “click-to-source” capability embedded so you can verify any number with a single click.

Skip to the 30-second mark in this video to see “click-to-source” in action.

3. Cross-Company Scans/Screens

Investors aren’t just using AI to deepen their knowledge on companies they already know, many are leveraging it to find completely new stocks.

With natural language prompts you can replicate advanced screeners with even more customizability. If you have a structured database connected, AI models are able to perform cross-company scans or screeners to meet your specific parameters in minutes.

For example: “Show me all software companies above $2B market cap that had insider buys in the last month.”

4. Portfolio/Watchlist Monitoring

Certain prompts are great to run on a regular cadence, especially prompts relating to your portfolio or watchlists.

We recommend downloading your portfolio or watchlists from your brokerage/research platforms, and uploading them to Claude, ChatGPT, Codex, or whatever model you prefer. From there, you can run regular queries against your portfolio to make sure you’re staying up to date on every company you own or follow.

For example: “Here’s my watchlist. Grab all the companies with price moves greater than 10% in the last week. Show me the news headlines for each of them from the last 7 days.”

While we often see investors run these prompts against their own portfolios or watchlists, they could also be extended to any list of companies, like the S&P 500 constituents or certain fund holdings, etc.

Here Are 22 Ready-Made Prompts

If you’re looking for more inspiration, we just launched 22 different ready-made skills that anyone can start integrating into their AI workflows for free! These are out-of-the-box prompts catered to specific elements of the research process. These include sector breakdowns, earnings summaries, valuation reports, and much more.

Fair warning, while a few of these prompts may rely partly on general web searches, most need the Fiscal.ai Connector/Plugin to actually be effective. Our data connector not only improves the output reliability, but drastically improves the speed of response.

The Fiscal.ai Connector/Plugin includes:

• Real-time financials & ratios

• Segments & KPIs

• News

• Filings

• Ownership Data

And much more!

Our connector is free to test with a 40 company limited trial, and if you like the data, you can connect with our team to get a full unrestricted subscription!

If you have any skills or prompts that you like to use, let us know! Or if you have any questions about the Fiscal.ai data connector, simply reply to this email!