Improve IR with AI: A Guide for Game Changers
Greetings fellow investor relations professionals,
Imagine the following: You are overwhelmed with preparing for an earnings release, having to juggle presentations and struggling to personalize information for investors. Does this sound familiar? As an investor relations (IR) professional, I know how hard it is. But what if I told you that there's a secret weapon just waiting to be unleashed? Artificial intelligence (AI).
Yes, you read that right. Artificial intelligence is no longer science fiction, but is rapidly changing the world of the investor relations society. It's not here to replace you, but to enhance your skills and take your investor communication to a whole new level. Buckle up, because we are going to look at the exciting possibilities, hidden potential and practical applications of AI in investor relations.
Unlocking the hidden potential: opportunities and challenges AI offers a wealth of opportunities for IROs:
You can streamline your workflows. Say goodbye to boring, repetitive tasks. AI can create draft earnings scripts, presentations and reports, freeing up your time for more strategic activities. And yes, you can even teach it to use your corporate language.
You can improve your content. It is possible to create compelling investor documents with AI-powered writing tools. These tools can help you refine your language to make it clearer and more concise, and even personalize content for different investor segments. No matter how well you speak your native language; there are always ways to sound better. Moreover, if you are publishing information in a second language, these tools will definitely make your life a lot easier, whether in translation or using the second language professionally.
You can get data-driven insights. AI can help you analyze big data to uncover hidden trends and patterns in investor sentiment, social media mentions and news coverage. This is extremely useful for adjusting your communication strategy, personalizing it even for retail or institutional investors, and in turn making data-driven decisions.
This is the powerhouse of personalization. Imagine being able to send each investor an update tailored to their interests. AI makes this possible by analyzing their past interactions and creating customized reports and summaries. I have seen this done but have not really used it yet…. I am excited to try it out in the future. Especially as the language definitely needs to be simpler for individuals than for institutional investors, who understand financial jargon but may lack the technical jargon.
However, like any powerful tool, AI comes with its own set of challenges:
Accuracy and control: Artificial intelligence is still under development and the results require careful editing and fact checking. Remember that it's a tool that supplements, not replaces, your expertise and judgment. Transparency and trust: Be open with investors about the use of AI to ensure transparency and build trust. Ethical considerations: As with any technology, ethical considerations such as privacy and bias must be handled responsibly.
Put AI into action: Your toolbox of champions The good news? There's a whole arsenal of AI tools waiting to become your secret weapon:
Natural Language Generation (NLG) tools, for example, which can help you create an initial draft of your earnings script based on historical data and analyst reports. Tools like Yseop and Arria NLG for example can do just that, saving you valuable time and effort.
AI-powered design tools like Canva help you create visually appealing presentations and graphics for social media, even if you are not a design pro. The interface is easy to use, and the AI feature can even make suggestions based on your previous usage. This is especially handy if your corporate communications department is not involved in the financial marketing aspects.
Sentiment analysis tools or platforms like Brandwatch and Sprout Social use AI to analyze investor sentiment on social media and in the news to give you valuable insights into how your message is being received. This is fundamentally an important aspect of investor relations because we put the information out there, but is it actually received the way we intend it to be. Depending on the results, we need to optimize our part of the communication to tell our story better.
The versatility of investor relations is enormous. Not all of us work in the same way. Each of us has our strengths and weaknesses, and AI can help us improve our investor relations game. These are just a few examples of where investor relations might meet AI. However, the AI landscape is constantly evolving, offering ever more sophisticated tools and features. So we must always be on our guard. And believe me, if you have a need, if you ask for something to make your life easier, if you do X, someone has already asked that question before you and there is an AI tool for you.
Take your IR game to the next level: Some Practical Use Cases Here's how AI can be your secret weapon in practice:
You can personalize updates for investors. Imagine sending each investor a quarterly update summarizing the performance of their holdings, relevant news and upcoming events, tailored to their interests. There are a few tools that can make this dream a reality and help you strengthen relationships with your investors. Normally it takes days and a few emails to refine the information you send out, but with AI tools this can be done in minutes.
You can optimize earnings calls. With the help of AI writing wizards, you can write meaningful scripts for your earnings calls. These tools can analyze historical transcripts and analyst reports and suggest improvements in terms of clarity, conciseness and even highlight key talking points. Even if it's just a simple transcription while the meeting is taking place. This will save you a lot of hours, if not money in your budget.
You can improve investor presentations. AI design tools can help you create visually appealing presentations with data visualizations and infographics that will resonate with your audience. A trained eye for what is visually appealing is helpful, but the AI tool can even suggest different ways of presenting data or information.
These are just a few examples I have tried myself, but I discover new possibilities every day, and they are endless. I encourage you to experiment, explore and find the AI tools that best fit your needs and workflow. Some AI tools will make your life a lot easier, but remember that the tool also has a learning curve. Sometimes this is your own learning curve. Just asking questions or chatting on ChatGPT requires you to ask in the right way so that you actually get the answer you seek. So, learning to use the right prompts and instructions will get you far.
Start making AI part of your life and your workflow.
Best regards,
Müge
Frequently Asked Questions: An IRO Expert Answers The integration of artificial intelligence into investor relations is a fascinating topic that reflects the ongoing digital transformation in various industries. Here are some questions I have come across and the answers I have understood so far!
Q: Will AI replace my job? A: Not at all! AI is there to augment your skills and free up your time for more strategic tasks. Think of it as a powerful assistant, not a replacement.
Q: How do I get started with AI? A: Start by identifying your specific needs and challenges. Then research and experiment with free trials of different AI tools. Do not be afraid to ask your colleagues for recommendations and share your experiences.
Q: What is artificial intelligence in investor relations? A: Artificial intelligence in investor relations refers to the use of machine learning, natural language processing and other AI technologies to analyze, predict and manage interactions with investors and other stakeholders. This can include automating routine tasks, providing insights from financial data, personalizing communications and improving decision-making processes in IR activities.
Q: How can AI improve the efficiency of investor relations tasks? A: AI can significantly improve efficiency by automating repetitive and time-consuming tasks such as data collection, reporting and frequently asked questions. This automation allows IR professionals to focus more on strategic activities and decision making. In addition, AI can process and analyze large amounts of data faster and more accurately than humans, resulting in timely and informed responses to market changes.
Q: What are the challenges of implementing AI in investor relations? A: Implementing AI in investor relations presents several challenges, including the need for significant initial investment, the complexity of integrating AI into existing systems, privacy and security concerns, and the need for ongoing training and adaptation as AI technologies evolve. In addition, IR teams must first learn to understand and trust the insights provided by AI.
Q: What future trends can we expect to see in AI for investor relations? A: Future trends could include more advanced predictive analytics, increased use of voice and chatbots to interact with investors, greater integration of AI with blockchain for secure and transparent transactions, and the development of more sophisticated tools for real-time sentiment analysis. As AI technologies evolve, we can also expect to see more proactive and predictive IR strategies driven by AI's predictive capabilities.
Q: How can companies start integrating AI into their investor relations? A: Companies can start by identifying specific areas within IR that can benefit most from automation and improved analytics, such as data management, reporting or sentiment analysis. Next, they should invest in AI technology and skills development, either by training existing employees or hiring new talent. Partnering with AI solution providers and gradually integrating AI tools into existing IR processes can also help companies to make the adoption phase smoother and ensure a strategic approach to the use of AI in investor relations.
Yücel, currently Director of Investor Relations and Sustainability at Galata Wind Enerji (GWIND.IS), initially began her investor relations career in 2008 at Dogus Otomotiv (DOAS.IS). She promotes proactive strategies utilizing digital technology and AI, and she specializes in shareholder targeting. Galata Wind Enerji, traded on the Istanbul Stock Exchange, operates wind and solar farms in Turkey, and plans further expansion into Europe by 2025.