AI in IR – a new update: what to consider when doing IR in the online world of AI
AI has taken the world by storm, and everyone is wondering how this will impact one’s professional field. When knowing there are no right or wrong answers to this topic (either😊,) here are some views gathered for you to consider in the field of IR (investor relations of listed companies).
IRO’s are producers of new information
One thing, which almost always is not noted is that publicly listed companies are producers of new information. No information published for example every quarter is available anywhere on the internet before publication (well, at least most of it:). This positions IR functions in a unique way in terms of AI. Our role is crucial in that sense. None of the information can be found by algorithms before publishing.
3+1 more things to consider….
Be in control
In our opinion, what is important in the world of AI and as IRO of a company, is to take control of your own messaging. More tightly than before. In a world, where anyone can grab anything that is published on any website and create texts based on that, or videos or pictures based on algorithms you have no control over, it’s crucial to maintain a certain control over the messaging and the brand image among investors.
Cherish trustful communication
There are multiple studies (published already before AI) that in investors value information that comes directly from companies. In that way, they can trust, value it, and be certain that the facts are correct. In our opinion, this tendency will just intensify in the world of AI.
Be aware of your content
Yes, AI tools (or large language models) help in language grammar, making summaries, and checking grammar, in our daily work. Often embedded in the tools we already use. If we just want to use it. Just remember that in this “rally” of AI-generated content, many of us have only become “allergic” to the extensive AI-related content. It is quite easy to see if a text is written by AI. We feel it somehow, too. While using for example LLM (large language models) to ease your workday, be sure to think through if the texts you publish are at the level you require.
Don’t forget the investors’ side (as this might be the biggest impact we’ll face)
What we might consider more is how AI impacts the investors’ side of the game. While AI is not yet that accurate to make investment decisions (at least yet, based on recent views on Goldman Sachs’ AI team) for fund managers, partly because of AI’s “hallucinations”. This is easy to understand because there can be huge losses if a systematic hallucination appears in the trading system, for example, if a comma is in the wrong place 😊 However, for retail investors, if prompted usefully, AI can easily give investors model portfolios based on a risk level of the investor. Do their analysis. And it’s for everyone. In one second.
Legislation still under work
What is important to consider, is the legislation that is currently being built around AI, including large language models. Trademarks, property rights, etc…. It remains to be seen how goes, however, some say that GDPR was child’s play compared to what’s coming.
Stay tuned for further updates.
Mervi Pohjoisaho, Writer is Founder & CEO of Blue Berry Share – how to navigate in the online world with a new digital-first approach. How to reach investors you wouldn’t otherwise reach and do more with less. www.blueberryshare.com