Tese attributes save IROs time, and in aggregate,


will help generate more value with other initiatives. From an information consumption standpoint,


AI increases the availability of information at the point of need.


Companies are training AI tools on multiple


sources of data that contain information about sectors, industry, capital markets, politics, economics and the investment community, in addition to interactions with investors and the market at large. Such tools could then be designed to provide


IROs or investors information directly at the point of need. For example, when a question comes in from an investor during an earnings call, an AI tool could help the IRO address the question using natural language to formulate a response. Or if an investor visits a website and wants spe-


cific information, AI could deliver the information to the investor instantly. Te power of personalized IR at such a scale is something none of us could have imagined before.


The Time is Now Most IROs are already swamped with daily tasks, which leaves very little time to explore AI and LLMs. But now is an ideal time to lean into the power of AI. Sanghvi suggests two ways: First, open up a free ChatGPT account and ask


it all sorts of random, weird and wonderful ques- tions. “IROs have to experience it to understand it,” Sanghvi says. So I took Sanghvi’s advice, and asked ChatGPT


how AI will transform IR. Tis is what it said: “Overall, AI has the potential to revolutionize


investor relations by providing companies with more sophisticated tools for analyzing data, communicating with investors, and making informed decisions. How- ever, it is important to note that AI is not a substitute for human interaction and expertise, and companies should use it as a tool to complement their existing practices rather than replacing them entirely.” So, there you have it, folks. AI does not intend


to replace IROs! But even if AI doesn’t intend to replace IROs, there


will likely be a disparity between those executives who embrace it and those who do not.


niri.org/ irupdate


The biggest challenge is the fact there is no accountability or transparency for where AI or LLMs are deriving information.


“Your peers, investors, the media, everyone and their acquaintances, are going to be leveraging AI technology, if they aren’t already,” Sanghvi says. “Many of them have a secret—partners that are customizing and building AI tools specifically for their use. Tey aren’t figuring it all out themselves. “Make sure you have AI-informed and AI-advanced


partners in your network because today’s AI tools are already ancient news. Tey are set to be transformed in unimaginable ways over the coming months,” Sanghvi says. British entrepreneur Steven Bartlett recently posted on LinkedIn: “We won’t experience 100 years of technological advance in the twenty-first century; we will witness on the order of 20,000 years of prog- ress (when measured by today’s rate of progress), or about a 1,000 times greater rate of change than what was achieved in the twentieth century!” Tat’s a scary prospect, but the biggest worry for


IROs and public companies isn’t necessarily the rate at which technology is advancing.


Responsible AI Te biggest challenge is the fact there is no account- ability or transparency for where AI or LLMs are deriving information. A paper in the journal Nature made the argument that “black box machine learning models are currently being used for high-stakes de- cision-making throughout society, causing problems in healthcare, criminal justice and other domains.” Te same goes for LLMs that are providing IROs and investors advice. Until there is “interpretability” or definable reasons why a certain AI platform provides certain forms of information, it is difficult to have trust and faith in these platforms. I asked ChatGPT if IR professionals should trust


IR UPDAT E ■ SPRING 2 0 2 3 1 5


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