Significance of AI in the future of Investor Relations
Though it took several decades starting in the 1950s and 60s, over the last 10-15 years, Artificial Intelligence (AI) has progressed rapidly. So much so that from an exclusive domain of science fiction, it is more of a well-accepted fact now.
This development is primarily due to its versatility of impacting almost every known system comprehensively. Advanced level research and studies to harness the full power of AI are still being conducted across several countries, especially regarding the technology’s potential in surveillance, data crunching, and structuring workflow.
The field of finance has also not remained untouched. For example, the banks and financial institutions are using AI for customer acquisition, monitoring, and interaction purposes. The capital markets have also been evolving as a result of these technological developments and there are sophisticated trading systems at work in several global investment management firms.
The investor interaction with the companies is also undergoing a fundamental shift and numerous experts are exploring the possibility of AI tools impacting the performance of the Investor Relations effort of the company.
There are also efforts being made to bring more efficiency and streamlining in investor relations with the help of AI. From both an operational and strategic point of view, machine learning will be able to extract and handle information at a significantly faster pace than humans.
The gathered data can be used for targeting investors more effectively. For instance, machine learning has the capability to analyse hundreds of conference calls and identify any shift in tone among investors. Furthermore, the AI can gain access to proprietary sentiment, investor algorithms, and volatility for every stock.
This will lead the way investor relations teams construct their message and provide data to their investors, including key points throughout the year.
Artificial Intelligence (AI) in the coming years
Data scientists envision the application of AI in almost every aspect of life. From the advanced capabilities of autonomous cars and robots to daily uses in devices like smartphones and laptops, everything is integrated with AI.
Similarly, for investor relations, AI will soon be able to scourge through a vast expanse of data from various sources (real-time equity, business cycles, options trading fund flows, commodity prices, high-frequency trading models, and much more). The collected information can be structured via AI, which will give extensive help to the analysts, investors, and Investor Relations Officers (IROs).
AI will be leveraged in the fin-tech industry for anticipating market expectations, evaluating structure dynamics and analytics. By structuring and bringing sense to the ambiguous data sets, the IRO will gain a clear understanding of the crucial factors behind trading.
There is no doubt that this futuristic technology trumps human abilities when it comes to gathering and processing information, as it is faster, more objective, and accurate. With further enhancements, AI engines will be deft at finding correlations and patterns in any given data.
How are IR teams using AI?
Similar to how scientists predict the oncoming of rains, and autonomous vehicles determining how to drive, AI can learn to anticipate the behaviour of stocks in a variety of circumstances.
For such a purpose, large amounts of data are collected and the AI perceives how the company reacted in certain situations. With that reference, possibilities are generated and the most probable outcome is obtained. The machine predicts with confidence the stance which will be taken by the companies in various scenarios.
Major companies have already begun incorporating machine learning for their investment-related needs. Work is being continued to uncover additional sophisticated approaches for building advanced and intuitive index products, and to maintain dominance in the coming generation by identifying constituents with improved accuracy.
ExchangeConnect, a unified digital platform, leverages the capabilities of modern technologies and offers improved services for the capital market participants. In the near future, AI will be used not to substitute human capacities, rather extend and augment it for better results.
From predicting rainfall to creating successful outcomes, AI is central to transforming big data into desired results, and it will remain necessary for even bigger endeavours.