Notified Blog

AI and IR: A Roadmap for Successful and Responsible Implementation

The rapidly evolving world of artificial intelligence (AI) offers tremendous opportunities for investor relations teams to streamline processes and improve decision-making.

Our new playbook, created in partnership with IR Magazine as part of our AI Working Group, explores the key concerns and benefits of incorporating AI into IR programs and provides practical advice on how to get started.

Keep reading for a preview of what to expect – and access the entire playbook here!

The Business Case for Artificial Intelligence in Investor Relations

One of the recurring discussion themes is whether AI will replace the IRO. However, the consensus among experts is that AI will not replace IR pros, but rather enhance their abilities.

In our AI Working Group sessions, Erik Carlson, COO & CFO of Notified, emphasized that an IR pro who can use AI might replace those who cannot. Therefore, IR professionals have an obligation to leverage the available tools to stay ahead in the industry.

AI represents the next generation of the innovation curve within technology. Nimesh Davé, President at Notified, highlighted the importance of "teaching" AI and tailoring it to the specific needs of IR professionals. By using AI on a private system, IROs can create a tool that aligns with their code of conduct, ethics and company integrity.

The primary opportunity AI presents to investor relations is the ability to free up time for professionals to focus on their core strengths: messaging and building relationships. By automating time-consuming tasks and providing easy access to data, AI can significantly increase the efficiency of IR teams, especially for smaller teams with limited resources.

Implementing Artificial Intelligence in Investor Relations

AI can be applied to various areas of investor relations, and its potential is expanding as the technology evolves.

Some of the ways in which AI is already being effectively integrated into the IR toolkit include:

1. Slides, Images and Graphics

Creating visually appealing presentations can be time-consuming and costly, especially for small IR teams. AI tools like Beautiful AI provide a library of images and templates that enable IROs to quickly generate professional-looking decks. This not only saves time but also reduces expenses associated with hiring graphic designers.

2. Earnings Deck

Preparing an earnings deck can be a complex task. AI tools like Microsoft Copilot can assist in generating a first draft of slides, including visualizations of the data. This provides a starting point for IROs and helps streamline the process of creating compelling earnings presentations.

3. Theme Spotting

AI tools like Google Bard, which is tied to Google's search engine, can be used to identify key themes in specific industries. This serves as a checklist to ensure that IROs are not overlooking any important trends or topics.

4. Analyst Analysis

Challenging analysts' assumptions is an essential part of an IRO's role. AI can assist in this area by analyzing previous scripts, models and statements to identify areas where analysts may be overly bullish or bearish. This enables IROs to engage in more informed discussions and provide valuable insights to management.

5. Summaries and Peer Monitoring

AI tools can be used to monitor what peers are saying during earnings calls and summarize key highlights. This helps IROs stay informed about industry trends and investor sentiment. Additionally, AI tools can analyze and synthesize large volumes of documents, such as 10K or 8K filings, to provide quick summaries on specific topics of interest.

These are just a few of the ways AI is currently being integrated into the IR toolkit (with more examples found in our playbook).

By incorporating AI into various aspects of investor relations, IR pros can enhance their productivity, gain valuable insights and improve decision-making processes.

AI and IR: A Roadmap for Successful and Responsible Implementation

Artificial intelligence presents a wealth of opportunities for investor relations professionals.

While AI is still in its early stages of adoption within the field, it’s clear that the technology has the potential to revolutionize the way IR teams operate.

By embracing AI and staying ahead of the curve, IROs can position themselves as strategic partners within their organizations and drive value for their stakeholders.

Remember: Successful implementation of AI requires a thoughtful approach, continuous learning and adaptation to the ever-changing landscape of technology. By utilizing the insights and strategies provided in our playbook, IR professionals can embark on a transformative journey towards integrating AI into their investor relations programs.

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