letters stemmed from corporate social responsibility or sustainability reports and other voluntary disclo- sures. But there was little disclosure in SEC filings, and the SEC noticed.” Travers added, “Understanding what revenue


improvement will come from an AI implementation is important. Figure out how to use information in- ternally before speaking to it externally and putting it into messaging.” Ho noted that claims related to the bottom line


must also be verified. “People may say, ‘We’re using AI, which will lead to efficiencies and greater profit- ability.’ Tese claims need a reasonable basis. Make sure they are not overstated. “When using AI, disclosures can start looking


the same, and the SEC dislikes that. It’s fine to draft a general baseline disclosure with an AI tool, but then you need to tailor it to the company by talking to internal stakeholders.” “If you use AI to draft reports, don’t enter material


non-public information (MNPI) into something that could be made public,” Ho said. “Internal AI systems or secure platforms, where no information is shared externally, are safer to use. “But if you use an unsecure or free AI tool to


create something that might be shared publicly, be very careful. It’s fine to use those tools for generic disclosures or comparing public information but avoid entering MNPI. Tese systems may not keep your data private, so someone could extract that MNPI. “Many companies are now developing AI poli-


cies 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.”


AI and Governance Brandon Elliott, Managing Director, FTI Consulting, moderated a discussion about AI and governance with Steven Eliuk, Ph.D., Vice President, AI & Gov- ernance, IBM and Jeremiah Williams, CFA, Litigation & Enforcement Partner, Ropes & Gray LLP. Eliuk has spent the past seven years building


out IBM’s data and AI strategy for how IBM runs its internal systems and how the company uses data.


niri.org/ irupdate


NIRI Policy Statement on AI in IR


NIRI has issued a Policy Statement on the use of artificial intelligence (AI) in investor relations (IR).


NIRI believes that AI will be transformational to the IR profession and will increasingly be used for a broad range of IR activities. Given the rapid and recent advancements in AI technology, it is important for IR professionals to stay informed about the opportunities and challenges presented by AI. This new NIRI Policy Statement on AI in IR, which is available on the NIRI website at https://community.niri.org/viewdocument/niri- policy-statement-on-ai-in-ir-1, outlines the risks and opportunities of AI deployment, both in general and specific to the IR profession, and provides actionable practices for both individual practitioners and for companies to consider in adopting AI products. Recommenda- tions fall into the broad categories of education, governance, and IR use-case considerations.


“I want to thank the NIRI Board of Directors for recognizing the significance of AI technology in our capital markets, and the impor- tance of NIRI, as steward of the IR profession, in providing guidance on its use to investor relations officers and public companies more broadly,” says NIRI President and CEO Matthew Brusch, CAE. “I also want to thank the thought-leader members of the NIRI AI in IR Work- ing Group for their volunteer work in developing these important guidelines.”


The members of the NIRI AI in IR Working Group include: • Clayton Bilby, IRC, Working Group Chair, NIRI Board • Erik Carlson, COO, Notified • Andy Detwiler, CEO, Virtua Research, NIRI Board • Victoria Hyde-Dunn, VP IR, Informatica • Gregg Lampf, IRC, VP IR, Ciena • Rajesh Mehan, CMA, CTP, IRC, Vice President, Finance & Trea- surer, Steelcase, Inc., NIRI Board


• Evan Pondel, IRC, CEO, Triunfo Partners • Marc Silverberg, Managing Partner, Head of Energy, Sustainabil- ity & Modern Mobility IR, ICR


• Tim Stahl, Chief Revenue Officer, Q4 • Chris Symanoskie, IRC, SVP, Corporate Development and IR, Atomic Biometrics


IR UPDAT E ■ FA L L 2 0 24 2 1


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