Corbin Advisors Releases Inaugural Artificial Intelligence Survey

FARMINGTON, CT – June 12, 2024 – Corbin Advisors, a strategic consultancy accelerating value realization globally, today released its inaugural Artificial Intelligence Survey which captures trends in investment community and corporate issuer sentiment toward the burgeoning role of AI in the investment process and IR function. The survey is based on responses from 116 institutional investors and sell-side analysts globally, representing ~$8.7 trillion in equity assets under management, along with perspectives from 46 investor relations professionals.

Corbin Advisors’ Artificial Intelligence Survey finds that while AI adoption is in its infancy, there is interest and early-stage implementation in both investment processes and IR functions. Notably, 58% and 62% of surveyed investment community professionals and corporate issuers, respectively, report they are already using or evaluating AI in their investment process or IR function, and overall sentiment throughout our survey suggests a strong interest in exploring practical applications. However, meaningful proportions of both groups – 42% and 38%, respectively – note they are not leveraging AI technology at this time.

Continuing, 53% of institutional investors report AI is impacting their active decision-making process in some way, and 38% of corporates note that investors are inquiring about AI during meetings. That said, despite the material interest exhibited by the investment community, the level of credence being given to AI as part of the investment process is minimal. Of the 58% of institutional investors and analysts who are evaluating or already using AI in their investment and research process, half place a low significance on the tools being utilized today, while just 10% place high significance.

When it comes to use cases, 69% of the investment community point to using or evaluating machine learning or natural language processing for market and company research, with sentiment analysis, predictive analytics, and risk assessment also garnering meaningful concentrations.

As for issuers, three-quarters cite investor communications — specifically, earnings scripts and press releases — as leading applications, followed by 43% highlighting sentiment analysis. Competitive intelligence, data analysis, and market research each garner support in the 30%+ range.

Rebecca Corbin, Founder and CEO of Corbin Advisors, commented, “Our inaugural Artificial Intelligence Survey of institutional investors and corporate issuers underscores that AI adoption in the active investment decision-making and investor relations processes is still in its early days, but the extent of those using or evaluating the technology and its tangible applications is notable. As a thought leader at the nexus of global market trends, investor sentiment, and effective communication strategies, we will continue to evaluate the progress of AI usage across the investor and IR landscapes. As this technology continues to evolve and the industry digests AI’s productivity and privacy implications, we see a burgeoning theme of customized AI platforms for secure in-house use, the need for proactive adaptation and AI literacy, and AI-enhanced decision-making creating a premium on human connectivity.”

Respondents note several challenges hindering widespread AI adoption. Both the investment community and corporate issuers cite complexity, novelty, and data privacy as significant hurdles. However, the industry is showing signs of early maturation; 35% of corporates surveyed assert they have established internal policies regarding the responsible use of AI, while 22% of surveyed institutional investors and analysts say the same. Roughly one-third of both groups note some degree of firm-level restriction surrounding AI platform usage, with limitations ranging from AI being “completely disallowed” to constraints on inputting proprietary documents.