Aug 2026· Proceedings of the 32nd ACM SIGKDD Conference on Knowledge Discovery and Data Mining V.2· pp. 13328-13333· 0 citations· 50 references
Abstract
Financial markets are one of the few machine-learning settings where feedback is fast, mistakes are expensive, and deployment is constrained by execution and regulation. Yet most existing tutorials still treat finance either as an NLP benchmark or as a classical forecasting problem. This tutorial takes a different view. We show how recent progress in generative AI becomes genuinely useful in markets when it helps model participant behavior, ground reasoning in live documents and order-flow data, and support research and execution workflows that can survive contact with production. The material therefore moves in three steps: behavioral and market foundations; grounded LLM systems, including RAG, critique models, and agentic workflows; and responsible deployment, including corrected backtesting, execution, risk controls, and governance. Two live demonstrations and three optional Colab notebooks connect the lecture material to implementation.
This work investigates LLM-based forecasting agents, meaning systems in which a language model contributes to a scored prediction about a future or currently unobserved target, and organizes architectures into three groups.
Xiaogang Xu, Jiaqi Tang, Jianmin Chen et al.· 0 citations
Reinforcement learning with verifiable rewards (RLVR) improves large language model reasoning, but its practical scaling is constrained by expensive on-policy rollouts and the cost of obtaining reliable targets at scale. Existing methods address sample selection, incomplete supervision, or noisy labels separately, often entangling supervision logic with distributed training and hindering controlled comparison and reuse. We present DE-Venus, a unified framework for data-efficient RLVR that treats supervision as evolving state across data preparation and policy optimization. It organizes this lifecycle into three modules: Active Data Selection allocates training and annotation budgets; Weak Supervision Construction derives learning signals from unlabeled examples; and Training-Time Supervision Refinement filters or corrects unreliable supervision. DE-Venus supports seven representative methods and a data-selection pipeline by expressing method-specific decisions as offline dataset transitions or online transformations of targets, rewards, batches, and advantages while preserving verl's distributed execution contracts. Across public benchmarks and three business scenarios, separate configurations preserve or improve model quality with only 10% of labels or as little as 13% of relevant data; selected business configurations also reduce observed convergence steps by 63%--75%. DE-Venus thus reduces annotation and training costs without sacrificing scalable RL execution.
Shen-Zhi Yang, Guang-Cheng Zhu, Kai Tang et al.· 0 citations
It is concluded that while LLMs hold genuine promise within AI trading systems, robust deployment requires careful task decomposition, rigorous backtesting protocols, and domain-aware fine-tuning strategies.
Parent-order execution is a core problem in algorithmic trading, where the goal is to split a large order into smaller orders while reducing execution costs. Existing approaches either rely on pre-specified market assumptions that may not hold in practice, or require task-specific training that limits adaptability to new settings. To overcome these limitations, we present the first systematic study of large language models (LLMs) for parent-order execution. This extends the use of LLMs in finance from what to trade to how to execute. We propose PACE (Plan-Ahead Controlled Execution), a hierarchical framework that decomposes parent-order execution into long-horizon planning and short-horizon execution, requiring neither explicit market assumptions nor task-specific training. Experiments on Shenzhen Stock Exchange Level-1 data show that PACE outperforms TWAP, Almgren-Chriss, and learning-based baselines, exceeding the strongest baseline by 0.65 bps. Behavioral analysis reveals that LLMs make execution decisions differently from human investors: higher model confidence predicts better performance rather than worse returns, and the model trades earlier rather than procrastinating toward the deadline. These findings suggest that LLMs can complement human traders in execution decisions.
Modern marketing increasingly requires managers to deploy new content at scale, often with limited opportunity for prior testing. As a result, decisions about what to launch become strategic managerial choices under uncertainty rather than purely creative exercises. While generative AI makes the creation of new content fast and highly scalable, it simultaneously expands the set of options managers must evaluate, making reliable content selection increasingly difficult. We develop a framework for causal prediction that enables managers to evaluate and deploy novel marketing content generated by AI. The framework uses pretrained large language models to represent previously deployed content and learn how its features causally relate to outcomes. Using a rejection-sampling procedure, the framework screens new content proposed by generative AI to avoid extrapolation beyond what historical data can reliably support. In a large-scale email marketing application (3.3 million observations across 34 campaigns), the framework improves out-of-sample prediction and real-world deployment performance relative to standard approaches, enabling outcome-guided generation of higher-performing AI-generated content. The framework establishes a threshold based on how closely new content resembles past campaigns, separating cases where causal prediction is reliable from cases where direct experimentation is warranted. The framework has important implications for marketing decision making in a rapidly evolving environment where generative AI is transforming content creation and deployment.
Paul B. Ellickson, Wreetabrata Kar, James C. Reeder et al.· Journal of Marketing Researc...· 1 citation
The analysis first benchmarks naive and behavioral models against interpretable machine learning and deep learning models, then evaluates the modified EWA specifications of prior work against these benchmarks and uses the LASSO diagnostics to motivate a further nested frequency tracking extension.
Ngoc Linh Dao· 0 citations
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