When Summaries Distort Decisions: Information Fidelity in LLM-Compressed Financial Analysis
On the map: Efficient LLM inference and serving → Efficient reasoning and agent inference
Abstract (arXiv)
Financial decision-makers face more information than they can directly inspect, making context compression necessary. Yet when large language models (LLMs) compress financial source material, they can alter the investment judgment supported by the original source. We frame this problem as information fidelity: compression loses fidelity when it changes the decision induced by the source. In agentic systems, such losses may recur across intermediate steps and amplify throughout the decision process. Across financial filings and earnings-call transcripts, we find that LLM-based compression can produce fluent and factually plausible compressed contexts that nevertheless alter downstream decisions. We analyze two diagnostic patterns associated with fidelity loss: decontextualization, where salient evidence is retained but separated from the caveats and contextual qualifiers needed for correct interpretation, and model dependency, where different compressors expose different views of the same source. We then propose Agentic Context Compression, which generates multiple candidate compressions and audits their disagreements against the original source. Our results suggest that financial compression should be evaluated not only by efficiency or factuality, but also by its ability to preserve decision-relevant context.
Key facts. Cited by 2 papers in the map (data through 14 Oct 2026). Placed in Efficient reasoning and agent inference, one of 12 directions in Efficient LLM inference and serving. Builds on 25 of its 33 references that are in the map. First posted on arXiv 28 Jun 2026.
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- 2025Understanding and Improving Information Preservation in Prompt Compression for LLMscited by 15
- 2025Behavioral Analysis of Information Salience in Large Language Modelscited by 12
- 2025LLM as a Broken Telephone: Iterative Generation Distorts Informationcited by 12
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- 2026LLMs Corrupt Your Documents When You Delegatecited by 9
- 2025Quantifying Cognitive Bias Induction in LLM-Generated Contentcited by 7
- 2025SCOPE: A Generative Approach for LLM Prompt Compressioncited by 6
- 2025Document Summarization with Conformal Importance Guaranteescited by 6
- 2026FinTexTS: Financial Text-Paired Time-Series Dataset via Semantic-Based and Multi-Level Pairingcited by 5
- 2025MAD-Fact: A Multi-Agent Debate Framework for Long-Form Factuality Evaluation in LLMscited by 4
- 2026FinGround: Detecting and Grounding Financial Hallucinations via Atomic Claim Verificationcited by 4
- 2025Frame In, Frame Out: Measuring Framing Bias in LLM-Generated News Summariescited by 2
- 2025From Text to Alpha: Can LLMs Track Evolving Signals in Corporate Disclosures?cited by 2
- 2025Spot the BlindSpots: Systematic Identification and Quantification of Fine-Grained LLM Biases in Contact Center Summariescited by 1
- 2026Faithful Summarisation under Disagreement via Belief-Level Aggregationcited by 1
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Citing papers per year: 2026: 2.
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