SECOND TAKE: FT'S LEX
THE LEX COLUMN: Machines are learning to read boss-speak
The uniformity of executive language means hedge funds are increasingly running algorithms on verbal data sets
Players of Buzzword Bingo check off jargon spouted by CEOs in the hope of scoring a full house. It has long been a pastime of bored employees at mandatory “town hall” meetings. It is increasingly played by robots whose human handlers aim to make a killing on the stock market.
In theory, a computer should be able to pick up clues to profit performance by screening screeds of verbiage. Earnings calls are among the biggest potential data mines. Here, bots dig for price clues amid such ballast as analysts uttering the time-honoured ice breaker “great quarter, guys!”.