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

arXiv: https://arxiv.org/abs/2608.24842 · HTML: https://mlsanity.com/paper/2608.24842/

## Key facts

- No citing papers in the map yet (data through 14 Oct 2026).
- Builds on 14 of its 52 references that are in the map.
- First posted on arXiv 25 Aug 2026.

## Builds on (most cited first, 14 of 14)

- [Retrieval-Augmented Generation for Knowledge-Intensive NLP Tasks](https://mlsanity.com/paper/2005.11401/) (2020)
- [Locating and Editing Factual Associations in GPT](https://mlsanity.com/paper/2202.05262/) (2022)
- [RULER: What's the Real Context Size of Your Long-Context Language Models?](https://mlsanity.com/paper/2404.06654/) (2024)
- [Refusal in Language Models Is Mediated by a Single Direction](https://mlsanity.com/paper/2406.11717/) (2024)
- [Steering Language Models With Activation Engineering](https://mlsanity.com/paper/2308.10248/) (2023)
- [Sparse Feature Circuits: Discovering and Editing Interpretable Causal Graphs in Language Models](https://mlsanity.com/paper/2403.19647/) (2024)
- [Retrieval Head Mechanistically Explains Long-Context Factuality](https://mlsanity.com/paper/2404.15574/) (2024)
- [Zoology: Measuring and Improving Recall in Efficient Language Models](https://mlsanity.com/paper/2312.04927/) (2023)
- [HELMET: How to Evaluate Long-Context Language Models Effectively and Thoroughly](https://mlsanity.com/paper/2410.02694/) (2024)
- [How do Language Models Bind Entities in Context?](https://mlsanity.com/paper/2310.17191/) (2023)
- [Verbalizable Representations Form a Global Workspace in Language Models](https://mlsanity.com/paper/2607.15495/) (2026)
- [Qwen-Scope: Turning Sparse Features into Development Tools for Large Language Models](https://mlsanity.com/paper/2605.11887/) (2026)
- [Look Before You Leap: A Universal Emergent Decomposition of Retrieval Tasks in Language Models](https://mlsanity.com/paper/2312.10091/) (2023)
- [Generative AI for Analysts](https://mlsanity.com/paper/2512.19705/) (2025)

## 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.