The potential uses of artificial intelligence and machine learning in various facets of different industries cannot be understated. Generative AI has been helping investor relations professionals, too, in many aspects. AI has offered valuable support, from drafting communication to answering their queries through chatbot. The organizations are leveraging the power of AI in improving their relationships with the investors, stakeholders, analysts, and reporters.
Let’s discover the real potential of AI in strengthening investor relationships.
How is AI helping to Grow the Future of Investor Relations?
Here are a few ways to strengthen the role of AI in transforming the future of investor relations.
Improving Communications
Generative AI models, a subset of AI, help firms write new and error-free textual content. The content is meaningful and includes key company information. This saves the time of investor relations private equity professionals in building proxy statements, collecting huge input data, jotting down quarterly earnings reports, and more. Often, the new shareholders need an overview of the company’s background. AI in private equity helps provide them with the same, along with accurately answering the anticipated questions.
Last year, Disney’s CEO, Bob Iger, shared the significance of using AI-driven avatars for earnings calls. Another stalwart, Box CEO Aaron Levie, said AI could swiftly help aggregate and analyze earnings.
The Power of Data
Meaningful insights from authentic shareholder data can help organizations understand their investors better, their unique needs and demands, and their behavior. This can improve transparency, engagement, and communication. AI can provide companies with large amounts of information about their customers, who are their shareholders too.
Providing Quick Responses to Investor Queries
Many times, investor relation teams are found overwhelmed with queries, concerns, and requests from individual investors. This does not allow investor relation teams to focus on other core activities. AI can help with 24/7 personalized shareholder chatbots. AI-powered chatbots are those conversational tools that support the company in quickly and correctly answering the investors‘ questions. The chatbots can provide key investors with the company overview, key metrics, and other fundamentals for decision-making. This makes companies more accessible and responsive, elevating trust and loyalty. However, organizations need to lower hallucinations or inaccurate responses from generative AI and use a controlled source of information for correct answers.
Identifying Investors Worth
Generative AI tools can provide shareholders‘ activities to the investor relations departments. They can track their filings, fund documents, and the worth of the investors. The professionals can study the review of filings, make quick comparisons of filings, and determine the potential for shareholder campaigns. The private equity industry experts can use machine learning models to predict future events like credit-rating change, etc.
Anticipating the Regulators
Generative AI can determine what regulatory bodies think about certain deals. AI uses information on those deals that were terminated by regulatory bodies. It can gather metrics on the competition, price movement, market share, etc. and generate key insights for the investor relation teams. AI can help with cautionary insights. With large data sets, the teams can infer uncertainty and decide their course of action.
Offering Personalized Communication
Earlier, the companies sent generic messages or communication to the investors. Now, AI has powered you in better ways. You can send every shareholder tailor-made messages according to their specific relationship with the company. A long-term shareholder can get a direct message or the company’s performance during a certain period. AI permits publicly traded companies to implement vital brand moments.
Proactively Engaging with Investors
The investor relation teams communicate directly with their shareholders annually during proxy season. Now, companies can use AI to proactively engage investors and provide them with content, rewards, experiences, etc., to enhance loyalty. Proactive engagement can bring a systemic shift in this industry, where the shareholders receive predictive insights, personalized experience, verified insights, discounts, and relevant information according to their investment history.
Fact-checking
Data, including sentiment extraction, social media content, public presentations, property filings, etc., allows professionals to use quantitative AI tools and gain investible insights. It can help them in company analyses. The teams can remain informed about external opinions, too. The investment management datasets can accelerate their activities.
Wrapping Up
In the race to embrace innovative technologies, it is important for investor relations to grab the opportunity and unlock several advantages of using AI. AI can help draft communication, improve earnings, make teams more effective, use chatbots to respond to investor queries, and connect more effectively with investors. The organizations should identify the hurdles or challenges in realizing the full potential of AI and successfully integrate AI in investor relations.
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