London Calling: AI, IR, and the Dawn of a New Era
Dear Colleagues and Friends,
Just back from the IR Impact Forum – AI & Technology Europe in London, and let me tell you, I'm buzzing with excitement! It wasn't just the iconic London skyline that impressed me, but the sheer energy and forward-thinking discussions surrounding the future of Investor Relations (IR). This wasn't your typical conference of theoretical concepts; it was a deep dive into practical applications, real-life examples, and the tangible impact AI is already having on our profession. What truly captivated me were the hands-on workshops. Seeing AI tools in action, understanding the nuances of prompt engineering, and witnessing how raw data could be transformed into strategic intelligence within seconds was nothing short of revolutionary. We're moving beyond the "what if" stage and into the "how to" phase, and it's thrilling!
The panels were equally enlightening. Gone were the days of abstract discussions; we were presented with concrete use cases, challenges, and solutions. It was clear that AI isn't just a buzzword anymore – it's a fundamental shift in how we approach IR.
The Need for Upskilling in AI: A Personal Journey One of the key takeaways for me was the urgent need for IR professionals to upskill in AI. We can't afford to be passive observers; we need to become active participants in this technological revolution. And honestly, I've noticed that some IROs haven't even taken the first step in experimenting with AI yet, but I am convinced that seeing hands-on uses have created a sense of urgency.
Prompt Engineering & AI Literacy: Initially, I considered diving into coding to fully leverage AI's capabilities. However, I've discovered the exciting world of no-code AI agents, and I'm eager to explore their potential. These tools promise to democratize AI, making it accessible to professionals without coding expertise. It's not just about asking a question; it's about understanding the language of AI, structuring your queries effectively, and refining them iteratively. Imagine being able to analyze thousands of news articles, social media posts, and investor reports in minutes, extracting key themes, and identifying potential risks or opportunities. That's the power of prompt engineering! I've already started experimenting with different platforms and prompts, and the results are astounding. Learning by doing! A Word of Caution: As we delve deeper into AI, it's vital to remember the cautionary tale of HAL 9000 from "2001: A Space Odyssey." While HAL was a computer that “started to think on its own and make decisions accordingly”, we have come to an era where AI can be incredibly powerful. We must maintain control and ensure that it remains a tool to enhance our capabilities, not replace them. Furthermore, our learning journey must also encompass Digital IR. AI enabled tasks are not to be confused with automation or RPAs. We must also learn how to use digital platforms to our full advantage, and use AI to augment our digital presence. AI Ethics & Governance in IR: As we embrace AI, we must also be mindful of its ethical implications. Ensuring fairness, transparency, and accountability is paramount. For example, when using AI to identify potential investor targets, we need to ensure that our algorithms don't perpetuate biases or exclude diverse groups. The forum highlighted the importance of establishing clear guidelines and protocols for AI usage, ensuring that our insights are not only accurate but also ethically sound. AI-Enhanced Human Judgment: Let's be clear and I repeat: AI will not replace IR professionals. Our human intuition, empathy, creativity and relationship-building skills are irreplaceable. However, IR professionals who leverage AI will undoubtedly outperform those who don't. The future is about collaboration, not replacement. AI can handle the data crunching, the pattern recognition, and the repetitive tasks, freeing us up to focus on strategic thinking, relationship management, and creative problem-solving.
Where Could AI Take IR in the Next Decade? A Glimpse into the Future The forum also sparked my imagination about the future of IR. Here are some exciting possibilities, expanding beyond just investor facing tasks:
AI-Powered Digital Twins of Investor Portfolios & Internal Stakeholders: Imagine being able to simulate how investors might react to strategic decisions before they're even implemented. AI could create digital twins of investor portfolios, allowing us to test different scenarios and refine our messaging accordingly. But also, imagine digital twins of internal stakeholders to test internal communications before rollout. For instance, we could use AI to predict how an investor would respond to a new sustainability initiative, or how employees will respond to a new internal policy, allowing us to tailor our communication and address potential concerns proactively. AI-Generated Personalized Investor Roadshows & Internal Training Modules: Gone are the days of generic roadshow presentations. AI could analyze investor portfolios and priorities, generating customized presentations for each individual. But also, AI can create personalized training modules for internal teams on new procedures or financial reports. Imagine delivering unique presentations tailored to hedge funds, pension funds, and retail investors, highlighting the aspects of our business that are most relevant to them. Or, imagine training modules that adapt to the learning style of each individual employee. We have become so sensitive to eliminating information asymmetries in our communications that many tools are updated once a month or quarter and provide so much information to each stakeholder that such personalization at this point can bring more problems than solutions. Creating a personalized presentation can also clog up the website... But I am sure that as technology advances, there will be various possible solutions to this problem. AI-Driven Investor Relationship Management Bots & Internal Information Hubs: AI assistants could handle routine investor inquiries 24/7, providing real-time, customized responses and escalating complex issues to IR professionals. But also, AI can power internal information hubs that answer employee questions about company policies, benefits, and financial data. This would allow us to scale our engagement, provide round-the-clock support, and free up our time for more strategic initiatives, both externally and internally. And we are already seeing some of these bots popping up here and there!
The Power of Prompt Engineering and AI Literacy: Self-Teaching and Progressing The forum underscored the importance of prompt engineering knowledge and AI literacy for IR professionals. Thankfully, there are many avenues for self-teaching:
Experimentation is Key: Start by using free or low-cost AI tools. Begin with simple tasks, like summarizing news articles or generating social media posts. Example Prompt: "Summarize this financial news article in 3 bullet points: [Paste article text]." Refinement: "Now, extract the key risks and opportunities mentioned in the article." Iterative Prompting: Don't expect perfect results on the first try. Refine your prompts based on the AI's output. Example: If the AI's summary is too general, add specific instructions: "Summarize this article focusing on the impact on the company's stock price." Explore Different AI Models: Experiment with various AI platforms and models to find the ones that best suit your needs. Learn from Online Resources: Utilize online tutorials, documentation, and forums to understand the nuances of prompt engineering. Ask Specific Questions: When using AI, be specific and provide context. Example: Instead of asking "What is the company's financial performance?", ask "What are the key financial performance indicators for the company in the last quarter, and how do they compare to the previous quarter?" Use Role-Playing Prompts: Ask the AI to act as a specific persona. Example: "Act as a long term Value investor and write a list of 10 possible questions on the company's earnings."
By embracing self-learning and continuous experimentation, IR professionals can unlock the transformative potential of AI. Just start!
And if you're looking for brainstorming partners, or want to share your own AI learning journey, I'd love to connect and share experiences.
Best, Muge
Your fellow IR Enthusiast!
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 , traded on the Istanbul Stock Exchange, operates wind and solar farms in Turkey, and plans further expansion into Europe, reaching a capacity of over 1000 MW by 2030.
Yücel has recently published "The Investor Relations Playbook - Achieving Sustainable Success", a hands-on guidebook on investor relations operations with templates, checklists and how-to guides. The book is available in print in Turkish and in digital form in English.