TLDR: Generative AI is increasingly being adopted by investor relations departments to streamline earnings call preparations, including refining executive remarks, anticipating analyst inquiries, and analyzing market sentiment, leading to more efficient and insightful communication.
Artificial intelligence, particularly generative AI, is rapidly transforming how investor relations (IR) departments prepare for crucial earnings calls. This technological integration is moving beyond mere efficiency gains, fundamentally reshaping the strategic approach to quarterly financial disclosures.
Companies are leveraging AI for a multitude of tasks previously handled manually. One primary application involves refining prepared remarks, with AI tools assisting in word choice to convey precise messages. For instance, an AI tool might suggest whether to describe a quarter as ‘strong’ or ‘solid’ based on the performance metrics of other companies, as noted by Dan Sandberg, head of quantitative research and solutions at S&P Global Market Intelligence. Beyond word selection, AI can analyze the ‘harmonics’ in executive statements, assessing tone as upbeat, gloomy, or measured, potentially catching unintended signals before they are broadcast, according to Steve Soter, vice president at business-reporting software provider Workiva.
Predicting analyst questions is another significant area where AI offers a distinct advantage. By processing vast amounts of historical data, market trends, and company-specific information, AI models can anticipate the types of questions analysts are likely to pose, allowing IR teams to prepare comprehensive answers in advance. This proactive approach helps companies like shoe brand Skechers USA and networking-systems provider Ciena, which have already begun integrating generative AI into their earnings commentary preparation.
Data indicates a notable shift: as much as 44% of investor-relations professionals have already incorporated AI into their IR programs, primarily for generating written content. This adoption extends to drafting news releases and conference-call scripts, streamlining what was once a time-consuming process. Experts agree that while AI shouldn’t replace the CEO’s authentic voice, it can significantly save time and enable IR teams to focus on more strategic activities.
The technology also addresses the challenge of synthesizing vast amounts of information in a fast-moving macro environment. Ivan Zarate, manager of corporate reporting and investor relations at Air Canada, highlighted how quickly market conditions can change, making AI invaluable for adapting communications. George Gosden, senior account executive at AlphaSense, emphasized AI’s role in making sense of the ‘so much information that’s thrown at you.’ Chip Newcom, senior director of investor relations at Equinix, pointed to AI’s ability to ‘find the signal relative to the noise’ in a global and leveraged company context.
However, the increased reliance on AI also introduces new risks, particularly concerning ethical issues like transparency and accuracy, and crucially, data privacy. Advisers caution that uploading private, material information to public AI domains could lead to unintended disclosures. Businesses adopting or investing in private large language models are better positioned to secure their not-yet-public details.
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Overall, AI-driven platforms are modernizing the entire earnings call workflow, moving away from expensive, inflexible traditional production models. From scheduling and setup to self-managed Q&A and post-event analytics like indexed transcripts and call summarizations, AI is enabling IR teams to be more agile, communicate more frequently, and engage investors on their own terms, ultimately setting a new standard for investor communication.
