Writer: Kevin Dwyer, CEO & Head Trader September 5, 2023
AI refers to software-based systems that use data inputs to make decisions independently.
AI enables data to be processed far quicker and has an almost infinite number of applications across sectors¹. For IR, these applications could vary from data analytics on your company and analysis of shareholder voting behaviour to more effective investor targeting¹.
AI will change the investment landscape in three ways: Investors will be forced to place more value on the quality of a company’s AI assets. Investors will rely far more on AI-based research techniques to support their investment approach. Investors will compete head-to-head with the technology sector for AI talent¹.
AI can access propriety sentiment, volatility, and investor algorithms for all stocks. By using this data and analysis, IROs could be able to understand the motivation behind investment decisions and, therefore, better tailor messages to existing and potential investors¹.
AI tools can significantly enhance productivity for resource-constrained IR teams and allow them to achieve best-in-class performance. According to James Tickner, global head of product for IR Intelligence at Nasdaq, AI is viewed as a valuable accelerator that complements human expertise, streamlining tasks and reducing time spent on routine activities².
However, with the implementation of AI comes the responsibility to stay informed about relevant regulations. While the EU has already initiated AI Intelligence Act regulation, the US has provided non-binding practical guidelines through the AI Risk Management Framework and the Blueprint for an AI Bill of Rights. Companies must take a proactive role in using AI responsibly and ensuring data privacy and security².
Source: 2023-09-05
(1) AI & IR: The Rise of Artificial Intelligence https://www.eqs.com/en-us/ir-knowledge/blog/artificial-intelligence-in-investor-relations/
(2) Embracing the Future With AI https://www.cryptopolitan.com/embracing-the-future-with-ai-as-a-co-pilot/
(3) 31% of investors are OK with using AI https://www.cnbc.com/2023/08/24/31percent-of-investors-are-ok-with-using-ai-as-their-financial-advisor.html