A recent survey by Corbin Advisors unveils the preliminary stages of AI adoption in investment and corporate sectors, indicating promising growth. The survey shows the current landscape, challenges, and future outlook for integrating AI technology in decision-making processes and investor relations.
AI Adoption in Investment and Corporate Sectors Shows Promising Early-Stage Growth, According to New Survey
FARMINGTON, Conn. – June 12, 2024
A recent survey by Corbin Advisors sheds light on the preliminary stages of artificial intelligence (AI) adoption within the investment community and corporate sectors. The report captures insights from 116 institutional investors and sell-side analysts representing $8.7 trillion in equity assets, as well as 46 investor relations (IR) professionals globally.
The survey reveals that AI implementation in these domains is still burgeoning yet indicative of considerable interest. Approximately 58% of the surveyed investment professionals and 62% of corporate issuers are either using or seriously evaluating AI in their investment processes and IR functions. Conversely, a significant portion—42% of investment community members and 38% of corporate professionals—are not leveraging AI technology currently.
AI’s Role in Decision-Making and Investor Queries
More than half (53%) of institutional investors acknowledge that AI has impacted their decision-making processes to some extent, although the depth of AI implementation remains relatively modest. Among those utilising AI, only a small fraction (10%) attribute high significance to these tools in their decision-making processes. Correspondingly, 38% of corporates report that investors have raised inquiries regarding AI during meetings, underscoring a growing interest but a cautious approach toward AI integration.
Usage Patterns Across Sectors
Use cases for AI diverge somewhat between investment professionals and corporate issuers. In the investment sector, AI applications for market and company research are predominant, with 69% utilising or evaluating AI-driven machine learning and natural language processing. Sentiment analysis, predictive analytics, and risk assessment are other noteworthy applications.
On the corporate side, a substantial 75% report utilising AI for enhancing investor communications such as earnings scripts and press releases. Sentiment analysis is also prevalent, with 43% of issuers noting its use. Additionally, competitive intelligence, data analysis, and market research each see adoption rates above 30%.
Challenges and Regulatory Measures
Despite the enthusiasm for AI, respondents cite several barriers to widespread adoption. Complexity and novelty of AI technologies, along with data privacy concerns, are significant hurdles identified by both investment professionals and corporate issuers.
To navigate these challenges, some organisations have started implementing regulatory frameworks. The survey indicates 35% of corporates have established internal policies for using AI responsibly, compared to 22% of the investment community. Around one-third of respondents from both sectors report varying degrees of firm-level restrictions on AI usage, ranging from complete prohibition to limitations on inputting proprietary documents into AI systems.
Rebecca Corbin, Founder and CEO of Corbin Advisors, noted, “Our inaugural Artificial Intelligence Survey underscores that AI adoption in active investment decision-making and investor relations is still nascent. However, the extent of organisations already exploring or utilising the technology is notable. Future developments in AI literacy and the creation of secure, customised AI platforms are expected to drive more substantial integration of AI in these fields.”
Industry Outlook
As AI technologies continue to evolve, the investment community and corporate sectors are likely to witness increased adoption and more innovative applications. However, the current landscape suggests a cautious and incremental approach to integrating AI’s full capabilities. Emphasising human connectivity and AI-enhanced decision-making may eventually place a premium on human expertise, supplemented by technological advancements.
The survey by Corbin Advisors highlights the nascent but promising role of AI in transforming traditional investment and corporate communication processes. As the industry grapples with the complexities of AI adoption, the need for balanced and responsibly managed integration remains paramount.
