mlsanityData to 14 Oct 2026

Reading Is Not Using: Retrieval, Judgment, and the Design of AI Financial Research Workflows

arXiv 2608.24842 ↗First posted 25 Aug 2026cs.CL cs.AIcited by 0

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Abstract (arXiv)

Large language models (LLMs) are increasingly deployed as AI analysts to process financial disclosures and support AI-assisted investment decisions. Yet such systems are usually evaluated by what they can retrieve, not whether retrieved information affects their judgments. We identify a retrieval-integration gap in long-context financial analysis. Holding focal-firm information fixed and varying only unrelated context from 2,000 to 128,000 tokens, we find that a risk disclosure's influence on investment judgments falls to the experimental noise floor even as direct retrieval remains accurate. The pattern replicates across model families and judgment tasks and in experiments removing real disclosures from actual 10-K filings. More capable models postpone but do not eliminate the gap. Causal memory interventions show that compressed summaries and source-text lookup jointly transmit disclosures into judgments. Workflow architecture determines whether this transmission succeeds: chunk-and-summarize pipelines evict relevant information, whereas a targeted, structured restatement adjacent to the decision restores its influence. AI analyst performance is therefore jointly determined by model capability and workflow architecture. Retrieval-based evaluations can certify systems whose investment judgments ignore information they demonstrably retrieved.

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References · 14

  1. 2020Retrieval-Augmented Generation for Knowledge-Intensive NLP Taskscited by 9,297
  2. 2022Locating and Editing Factual Associations in GPTcited by 2,691
  3. 2024RULER: What's the Real Context Size of Your Long-Context Language Models?cited by 1,346
  4. 2024Refusal in Language Models Is Mediated by a Single Directioncited by 1,032
  5. 2023Steering Language Models With Activation Engineeringcited by 922
  6. 2024Sparse Feature Circuits: Discovering and Editing Interpretable Causal Graphs in Language Modelscited by 435
  7. 2024Retrieval Head Mechanistically Explains Long-Context Factualitycited by 232
  8. 2023Zoology: Measuring and Improving Recall in Efficient Language Modelscited by 204
  9. 2024HELMET: How to Evaluate Long-Context Language Models Effectively and Thoroughlycited by 125
  10. 2023How do Language Models Bind Entities in Context?cited by 108
  11. 2026Verbalizable Representations Form a Global Workspace in Language Modelscited by 75
  12. 2026Qwen-Scope: Turning Sparse Features into Development Tools for Large Language Modelscited by 21
2 more
  1. 2023Look Before You Leap: A Universal Emergent Decomposition of Retrieval Tasks in Language Modelscited by 18
  2. 2025Generative AI for Analystscited by 1

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