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IRI conducted an artificial intelligence (AI) Summit recently that explored the current state of AI use in the practice of investor relations (IR). Trough online panel discussions, case studies, and
product demonstrations, participants gained valu- able insights into leveraging AI to improve workflows, enhance transparency, and optimize communication. It provided practical knowledge and tools on AI
applications that attendees could begin implement- ing immediately in their IR programs. AI can be used effectively for tasks such as streamlining earnings processes, investor targeting, data analysis, sentiment analysis, and more. Te Summit also addressed considerations around
compliance, ethics, governance, AI security and risks, company AI policies, common pitfalls, and company internal hurdles. It was sponsored by FactSet, Nas- daq, Notified, Q4, Quartr, and S&P Global Market Intelligence.
Discussions about many of the challenging issues raised at the AI Summit are explored in this article.
AI Messaging and Compliance This discussion provided knowledge and tools to help IR professionals evaluate their company's AI claims and make informed messaging decisions. It also addressed complying with U.S. Securities and Exchange Commission (SEC) regulations designed to ensure accurate and transparent disclosure about company use of AI. Mike Travers, Finance Director, Investor Relations
at Xylem, Vice Chair of the NIRI Education Commit- tee, interviewed Justin “J.T.” Ho, Partner and Head of the Public Company Advisory practice at Orrick, who reviewed a range of key compliance and regulatory issues that IR professionals need to understand. Travers began with a caution about how AI is
discussed by public companies: “Just as we saw with the surge of greenwashing a couple years ago, we’re now seeing a similar trend with artificial intelligence. Everywhere we look, companies are claiming to be powered by AI or to have built a revolutionary AI platform that is driving incredible revenue growth. “But how much of this is real and how much is hype? Are we witnessing a genuine AI revolution in
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the business world, or are some companies simply riding the AI wave to inflate expectations and attract investors? Misleading claims can deceive investors and distort markets.” Ho explained, “The SEC wants companies to disclose their actual AI risks and not just provide boilerplate. It should be specific to the company. I always encourage companies to make sure their disclosures align with their actual enterprise risk management assessments. You don’t want to overstate or understate your AI risk. “Te SEC also looks at the board and management’s
“Many companies are now developing AI policies and training their people on responsible AI use. AI is a good starting point for various tasks but may generate inaccuracies. Sometimes people get overconfident about their AI knowledge without fully understanding it.” - J.T. Ho, Orrick
role in AI oversight. Is management doing what the board asks? Proxy advisors, who make recommenda- tions to institutional investors, also focus on whether a company discloses AI oversight at the board level and if that aligns with what peers are doing.” Ho also cautioned companies not to overdo
disclosures: “With cybersecurity and ESG issues, many disclosures got longer and longer. Tis isn’t the right way to do it. Tink about your specific busi- ness, context, risks, and actions. If it’s not material, don’t disclose it.” Reporting AI activities in earnings calls not covered in SEC filings is another red flag. “Tis happened with climate,” Ho said. “Climate related SEC comment
niri.org/ irupdate
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