How AI can be used to impact and potentially improve investment decisions and what this means for IR teams
“Vanguard founder Jack Bogle recently went on the record to predict that 90% of equity markets trading would be driven by passive investment funds and exchange-traded funds in the future. Active fund managers are under intense pressure to justify themselves and their fees. Pensions and cash given to an AI programme, the argument goes, will do a better job at a fraction of the price. Robo-advice is here to stay.”
Industry view: AI can change everything in IR, IR Magazine (Feb 27, 2019)
The future of artificial intelligence and IR
Will AI takeover? A common fear about the future for all sectors. Our view is that AI and human IROs will continue to work happily alongside one another for as long as we can predict. IR is not just based on data. Trust and relationships are integral to an effective IR programme and this will continue to be the case. AI will however allow IROs to gain deeper insights into vast amounts of data much more quickly and effectively, thus allowing them to enhance their performance.
This is an ever-evolving space and IR-related tools will continue to be introduced to the market. We would recommend keeping an eye for the new tools that make the lives of IROs easier. Watch this space.