L
et’s start with a disclaimer: This article was not written by artificial intelligence (AI), although I did use it to prompt answers to certain questions. It’s tempting to ask large language
models (LLMs) to write things for me. Te problem is that LLM-generated text is often soulless and the sentence construction is too clinical. Te sourcing is also erratic. And what about ethics? Prompting AI to write an article and then putting my name on it is plagiarism. Or is it plagiarism if I program the AI with my
own vernacular and point of view? IROs will soon be able to infuse the personality
traits of CEOs and CFOs into LLMs, and voila, all those earnings news release quotes and scripts will sing like the actual C-suite. But these are still the early days of AI, and the IR
community is just starting to figure out ways to use the technology to better inform and communicate with key stakeholders, including investors, media, customers, employees, and yes, other AI platforms. And then there’s the regulatory side of AI or the
lack thereof. Almost every single iteration of AI tech- nology is uncharted territory. Tere is no regulatory oversight of AI from any governing agency, which could have dire consequences for the people and companies operating in highly regulated industries such as the capital markets. But let’s not get mired in existential threats just
yet. Te potential benefits of AI in IR are endless, and IROs are incorporating it into their daily workflow.
AI in IR Workflow ChatGPT, an AI chatbot released last fall by OpenAi, is among the most popular AI platforms. Gregg Lampf, Vice President of Investor Relations at Ciena, has been tinkering with it for several months, summarizing management remarks from the transcripts of peer companies and sell-side reports. “It’s very encouraging,” Lampf says, describing
the chatbot’s ability to create headers and bullets organizing the information. It’s just a matter of time before AI platforms are
helping IROs with proactive sentiment analysis as well as PowerPoint presentations. Imagine using AI
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to parse two dozen sell-side notes, while distilling the most compelling information when preparing for an investor day, non-deal roadshow, or earnings report. “It would be nice to be able to wake up in the morning and have that summary waiting for you in your inbox,” Lampf says. So what exactly are the implications of AI on the
future of IR? In 2020, the NIRI Tink Tank on Artificial Intel-
ligence forecast several effects of AI on the IR com- munity (See the report at
www.niri.org/thinktank.). Many of the Tink Tank’s prophecies are a reality today, including: • Automation is enhancing demand for more advanced technological skills as people increasingly interact with AI.
• Certain skill categories, such as data entry and processing, are in less demand.
• Companies are making significant organizational changes to address AI needs and skill shifts in workers to stay competitive. Continuous learning for workers and more cross-functional and team- based work are on the rise.
• Competition for high-skill workers is increasing, while displacement is a greater factor for low-skill workers, continuing a trend that has exacerbated income inequality and reduced middle-wage jobs.
Tere is also growing fear that certain IR functions
will become obsolete as AI gains more traction. But industry experts say this fear is mostly unfounded. “Te single biggest influence of AI on IR will be
the multiplier effect it will have on an IRO’s output,” says Amit Sanghvi, Global Vice President of Capital Markets Platform at Q4. “A close second biggest influ- ence will be the increased availability of information it will enable for IROs directly at the point of need.” Sanghvi went deeper on what he means by “mul- tiplier effect,” explaining how LLMs will transform the way IROs capture information and consume it. It’s now relatively easy to use an LLM to express your thoughts with professional, succinct sentences from shorthand notes or prompts. Or think about the ability to create entries in workflow tools, such as a CRM, without needing to touch the mouse for naviga- tion or fill out forms with numerous fields.
niri.org/ irupdate
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