When Chipotle Mexican Grill Inc.’s queso was trashed on Twitter after its debut last year, RBC Capital Markets assigned a machine to weigh the effect of the social media storm on the beleaguered burrito chain.

The result was a research note subtitled “Worst queso scenario?” that used analysis of tweets and Google searches to help analyst David Palmer justify cutting estimates on Chipotle’s earnings and sales. Artificial intelligence, or AI, helped show that negative sentiments on the queso launch affected Chipotle’s brand.

Royal Bank of Canada is one of the few North American banks to have incorporated AI into capital-markets research, reshaping how analysts work and offering a signpost for where other firms are heading. RBC’s research group has six data scientists and specialists split between Toronto and New York in its RBC Elements unit.

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“It’s a critical must-do for any research department,” Marc Harris, RBC’s head of U.S. research, said by phone from New York. “Giving great sell-side …read more

Source:: Financial Post – Tech

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