The Role of AI in Investor Relations: Useful but with Caution

As technology continues to evolve, artificial intelligence (AI) is making its mark across various industries, and Investor Relations (IR) is no exception. Daily, I find myself leveraging AI tools to streamline tasks, track market trends, and gather insights. The efficiency AI offers is undeniable—its ability to quickly sift through vast amounts of data, analyze market sentiment, and even predict stock movements has the potential to revolutionize the way IR teams operate. However, as much as AI is a game-changer, I remain cautious about fully integrating it into my workflow due to security concerns, especially when dealing with material nonpublic information (MNPI).

The Time-Saving Benefits of AI in IR

In the fast-paced world of Investor Relations, time is a precious commodity. AI can automate tedious tasks such as tracking competitor performance, summarizing earnings calls, or analyzing trends in financial reports. Tools like AlphaSense are indispensable in my daily routine. AlphaSense uses AI to search and analyze earnings call transcripts, SEC filings, press releases, and other financial documents, making it easier to track peers and conduct market analysis. This type of real-time information is vital when preparing for earnings calls or responding to investor inquiries. Rather than manually sifting through mountains of data or waiting for analysts to provide insights, AI allows me to access relevant information in a fraction of the time. This time savings allows me to focus on higher-level strategy, such as shaping messaging for investors or preparing for critical meetings with analysts. It also gives me a comprehensive view of the market landscape, keeping me updated on our competitors and broader industry trends.

Security and Privacy Concerns in an AI-Driven World

Despite the clear advantages, there are significant challenges associated with incorporating AI into the IR function, particularly around security and data privacy. In my role, I often work with sensitive information that is considered MNPI, such as earnings results before they are publicly disclosed or other corporate strategies that have not yet been announced. The risk of exposing this data through AI tools is a real concern. While most AI platforms and tools have robust security protocols in place, there is always the lingering worry about data breaches, whether from an outside source or internal mishandling. With the increasing sophistication of cyberattacks, it’s crucial that AI systems used in the IR function meet strict regulatory and security standards. Until I am more confident that these systems offer an ironclad security framework that ensures MNPI is adequately protected, my use of AI will remain cautious and circumstantial.

AI’s Long-Term Value in Investor Relations

Looking toward the future, I believe AI will play an increasingly central role in Investor Relations. In the long term, AI’s potential to improve efficiency and provide deeper insights will be hard to ignore. Imagine an IR function where AI not only tracks and analyzes market data but also helps craft personalized communications for investors, predicts market reactions, and provides real-time feedback on sentiment. This would dramatically enhance how IR teams engage with investors and stakeholders. Moreover, as regulations surrounding AI usage in corporate environments evolve, I expect security measures to become more robust, making AI tools safer to use with sensitive data. As more regulation and standardization are implemented, I foresee a future where AI can be fully integrated into IR operations without the concerns I currently face.

Weighing Risk and Return

In conclusion, while AI offers tremendous value in the Investor Relations function—saving time, improving efficiency, and providing critical market insights—I remain cautious due to security concerns, especially when dealing with MNPI. As more security measures and regulatory frameworks are introduced, I look forward to leveraging AI more comprehensively. For now, AI remains a useful tool in my IR toolbox, but until I am certain that it meets the necessary security standards, its usage will remain carefully monitored. Ultimately, AI’s long-term value to the IR function is clear, and I am excited about its future potential.

 

Will Stack
Senior Manager Investor Relations, Pactiv Evergreen

* Note: The opinion expressed is my personal opinion and not the Company’s position.