Prompt 2: What specific recommended language changes would you have for the neutral sentiment expressed in pages 2 through 5 in order to make it more positive? Identify the original neutral lan- guage and then your corresponding recommendation. Use a table. ChatGPT delivered informative results and Lampf noted that he also developed a more proactive exercise for this. In this initiative, the AI assistant will propose alternative language options for the script that aim to provide a balanced and thorough understanding of challenging issues in particular, while also affording additional messaging flexibility that can be leveraged over time if necessary. “I can assure you that the buy side and sell side are already doing this sentiment analysis that contributes to trading deci- sions, so it’s incumbent upon us to make sure we are also doing it,” Lampf says. “In using AI, it’s important to remember that we’re the subject matter experts. We all know our businesses and we know how to communicate. So the recommendations offered by AI are not replacements. “It’s rare that you’re going to get an ‘a-ha’ moment, but you will
get lots of nuances and interesting insights that could inform your thinking of how you might approach a challenge. Tat’s how I’m finding these tools to be very useful.”
A Former Journalist’s Perspective Te recent explosion in the use of AI can make everyone a journal- ist—much in the way that the advent of desktop publishing years ago could make everyone a designer. But it doesn’t mean that quality results will naturally follow. Evan Pondel, IRC, Founder of Triunfo Partners, provides an
interesting perspective given his background as a financial jour- nalist for many years at Dow Jones andTe Wall Street Journal. “Today, as an IR consultant, I look at AI as augmenting what I
do,” he says. “It serves as an excellent resource and empowers me with more information in a more efficient way than I had before. As IR professionals, we have access to a lot of different types of data. While it does not replace the content we have collected, AI can help define what is most relevant.” Pondel uses the paid version of GPT-4 (the newest version as of October 2023) and prompts it to analyze company information in the public domain, including earnings transcripts and news releases. For example, he used the following prompt to analyze the
investor thesis of a major phone company: Prompt: Reveal any potential holes in the [insert name of com- pany] investor thesis. • Dependence on phone sales • Supply chain vulnerabilities • Regulatory scrutiny
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• Innovation and differentiation • Rising component costs • Dependency on China Uploading public information can help with this analysis, but he does not recommend uploading information that hasn’t been previously published. Pondel also uploaded a news release from a steel company
and prompted GPT-4 with this question: “Why is the steel industry an attractive sector right now?” Te AI program delivered bullet points noting supply constraints, hedges against inflation, and infrastructure spending. He then drilled down further, asking GPT-4, “Why should
people invest in this stock based on this news release?” Te AI program cited impressive service sector performance, a resilient operational strategy, and share stability. “In this case I was working to create a compelling investment thesis and looking for some novel ways to think about why steel may be an attractive sector,” Pondel says. “These are simple prompts that can help if you’ve published your most recent earnings release and want to identify key points that might be attractive to potential investors. It’s a good exercise to validate what you’re thinking about.” He also uses GPT-4 to draft news releases, uploading a publicly
available text version of an income statement and balance sheet. “Tis is a way to develop another angle on something you previ- ously wrote about or didn’t write about,” Pondel explains. “Maybe it sets up a quote differently. Maybe it sets up some phrasing of an increase in a specific net metric or a decrease in a specific metric. Tese are tools at your fingertips that are relatively easy to use.” GPT-4 also has the capability to analyze Excel spreadsheets, which can be enhanced with Excel plugins.
Advanced Uses of AI Amit Sanghvi, Global Vice President, Capital Markets Platform at Q4, cites a study conducted by Harvard University, the Massachu- setts Institute of Technology, and Warwick Business School that demonstrated the value of generative AI. Te study involved hundreds of consultants in collaboration
with Boston Consulting Group, some of whom were not allowed to use AI to complete a set of 18 tasks and another group that did use AI to complete the tasks. Study results showed a 40% improvement in work output qual- ity, a 12% increase in the number of tasks completed, and a 25% increase in speed to complete tasks. Sanghvi also talks about how AI programs can help develop earnings call scripts, explaining that his team used “prompt engineer-
niri.org/ irupdate
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