IJSHMS

Large Language Model–Driven Economic Narrative Intelligence for Automated Financial Knowledge Synthesis

© 2026 by IJSHMS

Volume 4 Issue 3

Year of Publication : 2026

Author : Michael Omondi, Esther Jepchirchir, Catherine Chepkirui, Monica Awino

Citation :

Michael Omondi, Esther Jepchirchir, Catherine Chepkirui, Monica Awino, 2026. "Large Language Model–Driven Economic Narrative Intelligence for Automated Financial Knowledge Synthesis" ESP International Journal of Science, Humanities & Management Studies(ESP-IJSHMS)  Volume 4, Issue 3: 29-41.

Abstract :

The rapid advancement of Large Language Models (LLMs) has significantly enhanced the ability of computational systems to interpret, synthesize, and generate information from large volumes of heterogeneous financial and economic text. This paper introduces the preliminary concept of Large Language Model–Driven Economic Narrative Intelligence (LLM-ENI), a framework designed to automate the transformation of financial reports, central bank communications, regulatory disclosures, market news, analyst commentary, and macroeconomic narratives into structured and interpretable financial knowledge. Unlike conventional approaches that primarily rely on sentiment analysis or document summarization, the proposed framework emphasizes cross-source contextualization, temporal reasoning, evidence linking, contradiction detection, source reliability, and confidence-aware narrative generation. The framework integrates retrieval-augmented generation (RAG), domain-adapted financial language models such as FinBERT, financial knowledge graphs, event extraction, and quantitative indicators to generate evidence-grounded economic narratives. The study also examines critical challenges associated with LLM-based financial intelligence, including hallucination, source reliability, model bias, outdated information, numerical reasoning limitations, privacy, regulatory compliance, and accountability. LLM-ENI is conceptualized as an analytical layer between raw financial information and human decision-making, enabling the rapid synthesis of complex and continuously evolving information across financial markets and economic systems. By integrating textual, numerical, and graph-structured information while maintaining evidence provenance, the proposed approach has the potential to improve information accessibility, traceability, and analytical transparency. The paper concludes by identifying future research directions for developing reliable, scalable, graph-aware, and real-time financial knowledge-synthesis systems.

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Keywords :

Large Language Models, Economic Narrative Intelligence, Financial Intelligence, Financial Natural Language Processing, Retrieval-Augmented Generation, Financial Knowledge Graphs, Generative AI, Knowledge Synthesis, Narrative Analysis, Financial Information Extraction .