Diving Into AI for IR: Expert Insights To Help You Get Started

The recent IR Magazine forum in London brought together industry leaders to discuss the exciting possibilities (and practical considerations) of artificial intelligence in investor relations.

Among the panelists sharing valuable insights was Erik Carlson, COO and CFO at Notified.

To help guide you in your AI journey, we’ve highlighted some of the main takeaways from his speaking session, including:

• Getting started with AI in IR
• Easy wins and focusing on the basics
• Building trust
• AI governance and policies
• The future with AI as a copilot

Keep reading to learn more.

Getting Started with Artificial Intelligence in Investor Relations

One major takeaway was about simplifying the idea of incorporating AI into investor relations.

Carlson suggested starting with using AI to automate repetitive tasks, which can free up a lot of time for IR professionals. This means IR pros can focus on more important things, such shaping the company's story, controlling the narrative and connecting with investors.

Instead of being overwhelmed by the idea of AI, Carlson suggests IROs look at it as a tool to make IR work more efficient and effective.

He emphasized that the real value proposition of AI for IR teams is giving them back TIME - shrinking workloads from 10-12 weeks per quarter down to just 4-5 weeks.

This recovered time can be reinvested into higher-value activities, such as engaging investors around the corporate narrative.

Easy Wins and Focusing on the Basics

Carlson and Nick Stone, Head of IR at GSK, highlighted the importance of identifying and focusing on “easy wins or low-hanging fruits” with AI integration. These include tasks such as content generation, content curation and quality checking, which can be effectively automated to enhance efficiency and productivity.

Starting with these easy wins helps IR teams get comfortable with using AI and shows its practical benefits. Successful small projects can then pave the way for larger AI initiatives in the future.

“With private enterprise tools, we can be running things like earnings calls scripts, or annual reports, to check for tone, sentiment tonality, which are all very important - but I do think there are providers like Notified that have a role to play in providing those secure tools in an environment where it can be used as a purpose-built tool for IR,” Carlson said.

Building Trust in 2024: A Foundation for Success

“If the theme for 2023 was AI, the theme for 2024 is trust.”

As Carlson emphasized, building trust in AI's accuracy and reliability is paramount - especially when it comes to financial data, disclosures and analysis that could impact investors.

To cultivate this trusted ecosystem, Notified is focused on developing enterprise-grade, secure AI tools tailored specifically for IR's unique requirements around data security, compliance and ethical use. Rather than general AI models, Notified specializes in IR-centric capabilities governed by clear processes to prevent errors.

This vision extends to implementing robust AI governance frameworks for responsible adoption. Carlson advocated for clear AI use policies, risk management protocols, staff training and auditing overseen by an AI governance committee that meets monthly to adapt to rapid innovation.

"Notified's solutions are built from the ground up with security, compliance and ethical AI use as foundational principles," Carlson said. "We want to be the trusted partner upholding AI governance best practices for the IR community."

AI Governance and Policies

While AI offers immense potential benefits for IR teams, Carlson firmly stressed that its adoption needs to be governed by clear policies and oversight frameworks. Implementing AI tools without proper guardrails raises significant risks around security, compliance and ethical use.

A key requirement highlighted by Carlson is the establishment of a foundational AI use policy and governance structure within organizations. These policies need to clearly define permissible AI use cases, risk management processes, staff education requirements and auditing mechanisms.

Given the rapid pace of AI innovation, Carlson advocated for the creation of an AI governance committee that reviews and updates these policies on a frequent (monthly) basis. The complexities and nuances around responsible AI utilization require this level of consistent inquiry and management oversight.

“A monthly basis is needed, because that’s the speed of innovation in this industry today and really how quickly things change,” said Carlson.

Crucially, the governance framework needs to incorporate ongoing mandatory education initiatives. All employees interfacing with AI systems must undergo comprehensive training on the appropriate and authorized use of these tools based on the defined policies. Lack of workforce education amplifies the risk of misuse, whether accidental or malicious.

From a security perspective, Carlson warned about emerging threats like AI-enabled spoofing that have already led to multi-million dollar losses. Robust governance mitigates these vulnerabilities by restricting access, enforcing authentication protocols and implementing other essential safeguards.

By prioritizing AI governance, education and ongoing policy refinement, IR teams can responsibly capture AI's benefits while proactively managing its underlying risks through thorough oversight and control frameworks.

The Future: AI as an IR Copilot

Looking ahead, Carlson was excited about Notified's roadmap for establishing AI as an ever-present, intelligent copilot for IR teams, allowing them to tell better investment stories.

Some key initiatives include:

• AI-Powered Earnings Call Coach - This upcoming solution leverages AI to analyze sentiment and tonality in earnings call scripts and releases, ensuring your message resonates with investors.
  
  
• Proactive Q&A Prep - Carlson sees major opportunities for AI to transform how IR teams prepare for investor engagement. Advanced natural language processing techniques could intelligently analyze past earnings transcripts and predict the most likely questions before calls ever happen.
  
  
• AI-Powered Content Library - Notified is building out an AI-assisted content library that can provide dynamic, context-aware support during live investor meetings and calls. Much like modern AI assistants, this would allow IR pros to instantaneously pull information from their content library by simply asking questions naturally.

Download Our New AI Playbook to Get Started

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