Bighead's Algorithm Notes

Sep 3, 2026 · Artificial Intelligence

LLM Compression of Financial Texts Alters Decisions Despite Factual Accuracy

A new arXiv paper introduces Information Fidelity to measure how LLM compression of 10-Q MD&A sections and earnings calls changes downstream investment decisions, identifying decontextualization and model dependency as key failure modes and proposing Agentic Context Compression (ACC) to audit and reduce decision flips.