Work

Enhancing Equity Research with AI: A LangChain-Based News Analysis Framework

Year: 2025
Type: article
Abstract: The advancement in chatbot technology and large-scale data processing has significantly transformed financial analysis and equity research and many other things. This research presents a LangChain-based framework to process financial documents, including company reports and market trends, to generate actionable investment insights. By integrating state-of-theart technologies such as Large Language Models (LLMs) and advanced Natural Language Processing (NLP) techniques, the framework will support efficient data extraction, semantic analysis, and response generation. The proposed system begins by extracting key information from PDF documents, such as company financials and stock performance reports, which are then processed and segmented into manageable text chunks. These chunks are embedded into high dimensional vectors using techniques like Word2Vec or Doc2Vec, allowing the system to capture semantic relationships and store them in a semantic knowledge base. The knowledge base is further enhanced with tools like FAISS for efficient similarity search and information retrieval. In the second phase, the system responds to user queries by analyzing the context and questions posed. It retrieves relevant information from the knowledge base and generates responses using a generative AI model like GPT, ensuring high relevance and accuracy. The research also compares the system’s efficiency in answering various types of investment-related questions, showcasing the chatbot's capability to assist users in making informed decisions. The framework’s versatility and scalability, supported by cutting edge AI models and semantic search, demonstrate its potential to revolutionize the way equity research is conducted, providing financial analysts and investors with a more efficient and accessible tool for market analysis in the digital age.
Language: English
Open Access status: diamond
OpenAlex ID: W4411418688
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