How AI Helps Me Combat Confirmation Bias (And Research Faster)
Research 3x more companies without sacrificing depth. Here's the exact process I use professionally.
I have spent hundreds of hours integrating AI into my investing process, and in this article I am going to show you exactly how to use it. Your goal should be to leverage AI to generate more ideas, research them faster (so that you can dig deeper), find hidden risks, and strengthen your behavioral discipline, while keeping human judgment firmly in control.
This is not a shortcut. If you’re looking to skip the hard work of investing, stop reading this now and buy an index fund. This framework is for long-term investors who want to be more thorough, not less disciplined.
I am about to show you how to maintain rigorous analysis while expanding your research coverage. AI handles data synthesis; you focus on the judgment and critical thinking that actually generate returns.
The AI Equity Analyst will:
Generate investment idea candidates
Provide you with an overview of each company
Analyze each company’s industry and value chain
Analyze each company’s competitive position
Synthesize the information in annual and quarterly reports
Look for trends and insights in expert interview transcripts
Look for hidden risks not found in financial statements
Look for accounting red flags
Come up with a strong “Devil’s Advocate” assessment of your investment thesis
You will:
Supplement AI with your own reading, research and thinking
Come up with your investment thesis
Estimate a range of intrinsic values
AI saves you a massive amount of time that you reinvest into extra depth of research and judgment. You still retain control over the process and investing judgment.
The Behavioral Advantage
Value investors’ biggest enemy is themselves. This framework helps you:
✓ Combat confirmation bias with AI-generated Devil’s Advocate analysis
✓ Avoid anchoring through systematic multi-scenario evaluation
✓ Prevent availability bias via structured hidden risk screening
✓ Maintain discipline with a repeatable, rigorous process
AI can’t replace your judgment, but it can help you think more systematically and reduce your behavioral biases.
AI Equity Analyst Workflow
One of the keys to integrating AI into your investing process is knowing what to delegate to it, what to do completely yourself and which steps should involve both of you. Here is the workflow I use in my professional investing at Silver Ring Value Partners that has been saving me many hours without sacrificing quality or depth:
Idea Generation
AI is very helpful at generating a lot of potential ideas. Not all of them will be useful. In fact, many will be false leads.
That’s OK. Why?
Because you are going to go through the list manually and use your judgment to recognize the promising candidates for further work. All that matters is that some of the ideas generated with the help of AI will be promising.
Company Overview
This sounds simple, but in fact having a succinct summary of the business, its history and management can quickly allow you to decide whether you want to pursue an idea further. The goal is to not commit too much time upfront before you are confident that an investing idea is truly promising. So, outsourcing this to AI makes perfect sense.
Industry Analysis
Any company you choose to pursue as an investment is going to be greatly affected by the industry in which it operates. You want to quickly understand how attractive this industry is, and whether it is getting better or worse.
When you are just getting to know the company, outsourcing this to AI, assuming you prompt it well, is fine. After all, you are trying to quickly discard candidates that do not fit what you are looking for.
As you decide to go deeper, you will want to supplement AI’s work with your own research. However, for the many companies that you decide to pass on relying on AI analysis with a quick check by you is good enough. It’s the ones that you seriously consider investing in that you don’t want to fully delegate the judgment to AI on.
Company Competitive Analysis
This is one area where AI can really shine if you use it properly. By having it adopt various proven frameworks you can quickly understand how attractive the company is and whether the business is getting better or worse.
Again, if you decide to pursue the idea further you will of course want to do your own analysis and thinking. However, for many candidates what AI produces will be more than enough to get you to move on, saving you many hours in the process.
Annual Report Synthesis
Reading annual reports thoroughly is worthwhile, but it takes a lot of time. That doesn’t mean you shouldn’t do it, but it does mean that doing it early in the process, before you are really convinced that this is a high-probability investment opportunity can waste a lot of time.
Instead, you can make the annual reports into a story that you can quickly read, or even listen to. If you decide this is a company worth digging into deeper, you should definitely come back for a more thorough pass. This way, you can assess more investments before committing the time to go fully in-depth.
Expert Interview Trends
AI excels and synthesizing information across many different sources. If you have access to expert interview transcripts with suppliers, competitors, customers and former employees, this is an excellent use case.
Not only will AI save you a lot of time, but it will also recognize themes across different transcripts that are not easy to spot. In the AI Equity Analyst PDF I even share a prompt that goes beyond time saving and into finding patterns between the lines that humans are unlikely to pick up.
Hidden Risk Analysis
We all suffer from availability bias. All you see is all there is. And what we see is frequently curated by the management team which typically wants you to see the company in the best possible light.
Enter AI. You can have it scour the internet for risks beyond those mentioned in the “Risks” section of the Annual Report. Not only will it help you eliminate candidates faster, which means you can look at more ideas, but it will also help reduce your behavioral biases as you formulate your investment thesis.
Accounting Red Flags
If you have unlimited funds, you can hire a forensic accountant to go over each company that you are considering for investment with a fine-toothed comb. However, do you really want to do this early in the research process even if money were no object?
Instead, you can let AI make the first pass. If it finds real issues you can quickly move on. If you decide to do a deeper dive, you can always go back and study the accounting yourself.
Devil’s Advocate
You have done all the work. Meticulously built your investment thesis. Modeled the company. Now, you are ready to pull the trigger.
You should not do it yet. Why?
Because we are all full of behavioral biases. You can’t eliminate them, but you can reduce them. One way to do it is to seriously consider a strong opposing point of view to make up your mind.
I have tried having humans do it, and it frequently doesn’t work great for two reasons. First, if it’s someone who works for you, the politics can get in the way, no matter how good your intentions are. How often will you find someone who is willing to push back really hard against your views when they are reliant on your for their paycheck?
I even tried forming a Devil’s Advocate Club of other experienced investors where we took turn helping each other out. Great idea, but in practice people are busy and it’s hard to get people to commit serious time consistently in order to make this work.
Enter AI. It doesn’t care whether you agree with its conclusions. It’s never too busy. Yes, it’s not perfect, but neither are we humans. And having a consistent strong bear case available before you commit your capital is a serious advantage that you should not pass up on.
If you have gotten this far, you are clearly a serious investor. Take the next step. I have spent over 100 hours building out the AI Equity Analyst framework, testing and improving the prompts, and using the results in my day to day practice at Silver Ring Value Partners.
If you’re serious about improving your process, download the free AI Equity Analyst Framework. You’ll get the exact 13 prompts I use in my professional research workflow.
About the author
Gary Mishuris, CFA is the Managing Partner and Chief Investment Officer of Silver Ring Value Partners, an investment firm that seeks to apply its intrinsic value approach to safely compound capital over the long-term. He also teaches the Value Investing Seminar at the F.W. Olin Graduate School of Business.