Posted in Announcements

Automated earnings stories multiply

, by Erin Madigan White

The Associated Press, working with Automated Insights and Zacks Investment Research, is now automatically generating more than 3,000 stories about U.S. corporate earnings each quarter, a tenfold increase over what AP reporters and editors created previously. Here, Assistant Business Editor Philana Patterson, who has been overseeing the rollout of this process in the newsroom, gives an update on AP’s automation efforts that began last summer.

What changes has AP made to the automation process?
Since automation began in July, AP has added a number of enhancements to the stories. Descriptions of businesses have been added and the stories now include forward-looking guidance provided by the companies. We are running smoothly, and always looking for opportunities, along with Zacks and AI, to improve what we are producing with automation.

What has the reaction been?
There has been a great deal of interest about how automation works from both members and readers, and overall the reaction has been incredibly positive. AP members are getting more stories about companies in their markets than ever before. We want this process to be as transparent as possible so we have added an explanation of how earnings automation works. It can be found on Automated Insights’ landing page:

That link, and one from Zacks, is provided in the tagline of each story. We’ve also encouraged our members and subscribers to make these links available to readers when using the stories, especially online.

Internally, the reaction has been positive from staff, largely because automation has freed up valuable reporting time and reduced the amount of data-processing type work they had been doing.

How does AP ensure quality control?
Quality control was critical from the outset. We worked with Zacks and AI to make sure that every step of the process would produce stories without errors. When we launched last summer, a fair number of errors were discovered in the testing process. We then worked with Zacks and AI on solutions to ensure they wouldn’t happen again. Today, mistakes are rare. Pretty much the only time we will now have an error is if a number is entered incorrectly into the system at the beginning. Once you set up automation, and go through a rigorous testing process, you reduce the prospect of errors. In fact, we have far fewer errors than we did when we were writing earnings reports manually.

Has automation allowed staff to focus more on reporting?
Absolutely. Like all media, we are working with limited resources and it’s critical that we maximize the time reporters have to do journalism and break news. We estimate the automation of earnings reports has freed up about 20 percent of the time that we had spread throughout the staff in producing earnings reports each quarter. It is enabling us to reconfigure our business breaking news operations to be more in sync with social media and user-generated content, and focus more reporters on higher-end enterprise stories that break news that no one else has. Our goals are to break more business news than our competitors, aim higher on investigative and explanatory journalism and focus more of our work on the general consumer. We’ve got some big projects in the works. Automation is helping us free up resources to do all of these things.

What’s next?
This quarter, we are testing the automation of earnings from Canadian and European companies. We expect to add further enhancements and more companies in future quarters. My colleagues in the sports department are also exploring small-audience sports for automation in order to free staff to report news that fans and consumers do not get on the field or a broadcast. We expect to be talking about automation through the year, including at this year’s SXSW Interactive in Austin, Texas.