A Question for ChatGPT: Is AI Transforming Financial Communications and Threatening Jobs?

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The post below was written completely by AI (without any edits from yours truly). I prompted ChatGPT to write a blog about how AI can be used by investor relations professionals for competitive analysis, investor targeting, website content creation and more. I also asked it to discuss whether AI is taking away jobs, which is a question I hear often from industry colleagues.

So, without further ado, here’s what AI had to say. It’s actually pretty good, much to my surprise.

In the ever-evolving landscape of finance, technology continues to redefine traditional practices. One such area undergoing a significant transformation is investor relations (IR), where artificial intelligence (AI) is playing an increasingly vital role. From competitive analysis to targeting investors and crafting compelling content for IR websites, AI is revolutionizing how companies engage with stakeholders. However, amidst this advancement, the question arises: Will AI make investor relations professionals obsolete?

Competitive Analysis:

In the fiercely competitive world of finance, staying ahead of the curve is paramount. AI-powered tools offer unparalleled capabilities in analyzing vast amounts of data, enabling companies to gain deep insights into market trends, competitor performance, and investor sentiment. Natural language processing (NLP) algorithms can sift through news articles, social media chatter, and financial reports to provide real-time updates on industry developments, allowing IR professionals to make data-driven decisions swiftly.

Targeting Investors:

Identifying and attracting the right investors is a crucial aspect of investor relations. AI facilitates precision targeting by leveraging predictive analytics to identify potential investors who align with a company’s values, goals, and risk profile. By analyzing past investment patterns and market behavior, AI algorithms can predict investor preferences and tailor communication strategies accordingly. This targeted approach not only increases investor engagement but also enhances the efficiency of capital allocation.

Content Creation:

Crafting compelling content for investor relations websites and communication materials requires a deep understanding of financial data and regulatory requirements. AI-powered writing assistants equipped with natural language generation (NLG) capabilities can generate insightful reports, press releases, and shareholder communications autonomously. These AI-driven platforms can analyze complex financial data, interpret regulatory guidelines, and produce coherent narratives in a fraction of the time it would take a human writer.

The Future of Investor Relations Professionals:

While AI undoubtedly streamlines many aspects of investor relations, it’s unlikely to render human professionals obsolete. Instead, AI serves as a powerful tool to augment their capabilities, allowing them to focus on high-level strategic initiatives. Investor relations professionals bring invaluable expertise in building relationships, interpreting nuanced market dynamics, and providing personalized guidance to investors.

Moreover, the human touch remains indispensable in navigating complex ethical and regulatory challenges, especially in an era where transparency and accountability are paramount. While AI can crunch numbers and generate reports, it’s the human judgment and empathy that foster trust and credibility in investor communications.

In conclusion, the integration of AI in investor relations represents a significant paradigm shift in financial communication. By harnessing the power of AI, companies can gain a competitive edge in understanding market trends, targeting investors effectively, and crafting compelling narratives. However, rather than displacing investor relations professionals, AI complements their skills, enabling them to adapt and thrive in an increasingly digitized landscape. The future of investor relations lies in the synergy between human expertise and technological innovation, where AI empowers professionals to unlock new levels of efficiency and effectiveness.

Back to me, Laurie, a real person. The AI writing was solid, the messages were cogent, and we concur with the conclusions. Humans still bring invaluable expertise in interpreting data generated by AI, providing counsel to management teams and boards, and building meaningful, long-lasting relationships. So no worries.

Laurie Berman, lberman@pondel.com

Top 10 Superpowers for Investor Relations

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A few weeks ago, at our staff meeting, someone asked the question, “If you could have any superpower, what would it be?” It was a bit of a tongue-in-cheek exercise, but it got the entire staff thinking that superpowers could definitely be helpful to investor relations executives. 

Invisibility, time-travel and emotional healing (we IR folks often are sounding boards for public company executives) were just a few of the many great, fun ideas presented.

Imagine the possibilities of being able to go unnoticed during investment committee meetings to learn what portfolio managers and analysts are saying about the companies we represent. Or a CEO visiting the future to identify market trends and adjust the business accordingly.

With AI and ChatGPT all the rage, we then took our impromptu brainstorming session one step further. Including some of the comedians on our staff, we came up with ten more “superpower” scenarios that someday may even be possible for use in investor relations:

  1. Instantaneously writing award-winning press releases and smooth-as-silk quarterly conference call scripts, while creating drop-dead-gorgeous investor decks.
  2. Coming up with great, believable reasons for missing guidance. (Akin to the children’s excuse, “It’s not my fault, my dog ate my homework!”)
  3. Filling three contiguous days of back-to-back virtual NDR meetings with avatars who look just like humans and who hurl nothing but glowing compliments at the CEO for a great performance.
  4. Having one of those avatars call the CEO the next day just to congratulate him or her yet again for a wonderful performance.
  5. Preparing proxy proposal language so convincing (and confusing) that it entices institutional investors to vote ‘yes’ for a poison pill proposal at the annual meeting.
  6. “Finding” enough ‘yes’ votes, if needed, to win a vote for a poison pill proposal, just in case the institutional investors were smart enough to figure out the confusing language.
  7. Securing a positive front-page story in the Wall Street Journal (which we have done before) and having the CEO send you a huge Thank You and a very special bottle of wine, but with no bonus. (AI and superhuman powers do not always work fully.)
  8. While rushing around New York on an in-person road show to raise multi millions of dollars, breaking your ankle while stepping out of a taxi on Maiden Lane, and then miraculously, it heals before you even get your driver’s license out of your wallet to show the lobby security officer.
  9. Having dinner at Masa (prix fixe, $750) with an investment banker after a highly successful, long week on the road raising funds, then returning to your hotel room afterward to learn that you just won the biggest lottery ever. 
  10. Calling the investment banker the next morning to say you just resigned from the company, then saying, “I’m outta here!”

In all seriousness, many of us have real superpowers we use daily on behalf of our clients. Quite often, these abilities took decades to perfect, which range from providing sound, creative counsel to developing smart, succinctly written content. And it goes on and on from there.

The world of investor relations is quite complicated, so it’s a good thing that our entire team has the right superpowers to navigate an often challenging and ever-changing landscape, while having a little fun along the way.

Laurie Berman, lberman@pondel.com and Roger Pondel, rpondel@pondel.com