SeedPublished 2026-10-21
Does AI-assisted trading speed up price discovery?
In the finance journals both "artificial intelligence" and "price discovery" gained papers this year, but rarely in the same paper. Do markets with more AI-assisted trading take in news faster, or just louder?
What prompted this
The finance dashboard shows "artificial intelligence" and "price discovery" among the keywords growing fastest over the year. The papers that study AI in finance mostly look at prediction; the price-discovery papers mostly look at market structure.
Questions
- Around earnings announcements, do stocks with more AI-driven trading reach their new price faster?
- Does that speed come with more overshooting and reversal?
- Did anything change after large language models became widely used for reading news?
Data that could help
- Intraday prices around scheduled announcements.
- A proxy for AI-assisted trading, for example fund disclosures or order-flow patterns.