Value investing remains grounded in intrinsic value estimation, margin-of-safety reasoning, and disciplined fundamental analysis, but its practical execution is increasingly constrained by the scale, heterogeneity, and velocity of modern financial information. Recent advances in artificial intelligence (AI), particularly large language models and automated information-extraction systems, create new opportunities to accelerate financial analysis; however, their outputs remain probabilistic, context-dependent, and potentially error-prone, making governance and verification essential. This article proposes an AI-assisted value investing framework that integrates automated extraction, valuation modeling, explainability, and human-in-the-loop (HITL) supervision into a unified decision-support architecture. The framework is organized into three layers: (i) a data layer for traceable extraction and normalization of structured and unstructured financial information; (ii) a modeling layer for automated key performance indicator (KPI) computation, forecasting support, and discounted cash flow (DCF) valuation; and (iii) an explainability and governance layer for traceability, verification, model-risk control, and analyst oversight. A central contribution of the paper is the operational characterization of prompt literacy as a determinant of analytical reliability, showing that structured, context-aware prompts materially affect extraction correctness, usability, and verification effort. The framework is evaluated through a case study using Rivanna AI on three large U.S. beverage firms—namely, The Coca-Cola Company, PepsiCo, and Keurig Dr Pepper—selected as a controllead, information-rich setting for comparative analysis. The results indicate that the proposed workflow can reduce end-to-end analysis time from approximately 25–40 h in a traditional manual process to approximately 8–12 h in an AI-assisted setting, including citation/source verification, unit and period reconciliation, and review of key valuation assumptions. Rather than eliminating analyst effort, AI shifts it from manual information processing toward verification, adjudication, and interpretation. Overall, the findings position AI not as an autonomous decision-maker, but as a governed reasoning accelerator whose effectiveness depends on structured human guidance, traceability, and disciplined validation. In value investing, a discipline traditionally grounded in labor-intensive fundamental analysis and disciplined intrinsic value estimation, AI introduces the potential to scale analytical coverage and accelerate evidence synthesis. However, AI systems in financial contexts are probabilistic, context-sensitive, and inherently dependent on human interaction, raising critical questions about reliability, governance, and operational integration. This article proposes a structured framework for AI-driven value investing that preserves the foundational principles of intrinsic value, margin of safety, and economic reasoning, while redesigning the analytical workflow through automation, explainability, and human-in-the-loop (HITL) supervision. The proposed architecture integrates three layers: (i) an AI-enabled data layer for traceable extraction and normalization of structured and unstructured financial information; (ii) a modeling and valuation layer combining automated KPI computation, machine learning forecasting, and discounted cash flow (DCF) valuation; and (iii) an explainability and governance layer ensuring traceability, verification, and model risk control. A central contribution of this work is the operational characterization of prompt literacy, namely the ability to formulate structured, context-aware requests to AI systems, as a critical determinant of system reliability and analytical correctness. Through a focused case study using an AI-assisted analysis platform (Rivanna AI) on three U.S. beverage firms, we provide evidence that structured prompt formulation can improve extraction consistency, reduce verification overhead, and increase workflow efficiency in a human-supervised setting. In this setting, analysis time decreased from a manual range of approximately 25–40 h to 8–12 h with AI assistance and HITL validation, while preserving traceability and decision accountability. The reported hour savings should be interpreted as conservative estimates from the initial deployment phase; additional efficiency gains are expected as operational maturity increases, driven by learning-economy effects. The findings position AI not as an autonomous decision-maker but as a probabilistic reasoning accelerator whose effectiveness depends on structured human guidance, verification discipline, and prompt-driven interaction. These results redefine the role of the financial analyst from manual data processor to reasoning architect, responsible for designing, guiding, and validating AI-assisted analytical workflows.
Caridi et al. (Tue,) studied this question.