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Trust built, tech used: IROs shaping 2024 with innovation

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TLDR:

  • Publicly traded companies in Brazil are utilizing innovative technologies to enhance communication and transparency with shareholders.
  • Technological innovations include big data analytics, social media monitoring, chatbots, virtual assistants, and automated market reports.
  • Blockchain technology is being used to reinforce transparency and timeliness in disclosing information to the market, as well as improving corporate governance standards.
  • AI, virtual reality, and augmented reality are also being adopted to enhance investor relations, create immersive experiences, and improve decision-making.

Publicly traded companies in Brazil are increasingly using technology to build trust and enhance their investor relations. These companies are adopting various technological innovations to improve communication effectiveness and transparency with shareholders, potential investors, and the broader market. One significant innovation is the increased use of big data analytics, which allows investor relations teams to process large volumes of operational, financial, and market information to identify valuable insights and market trends. This includes analyzing data from social media, which can help monitor stakeholder sensitivity, manage risk factors, and potentially mitigate corporate crises.

IR teams are also taking advantage of social networks and customized mobile apps to improve disclosure methods. These tools are used to make quick market announcements, share earnings calls, and interact with stakeholders through chatbots and virtual assistants. Additionally, market reports are increasingly being automated, saving time and ensuring accuracy.

To reinforce transparency and combat insider trading, companies are seeking to strengthen disclosure practices and corporate governance standards. Blockchain technology has emerged as a significant trend in achieving these goals. It can be used to swiftly implement regulatory or corporate advances and improve compliance in corporate processes through features like biometric authentication.

Machine learning is also being utilized by publicly traded firms to optimize operational and financial performance forecasting and analyze unstructured data, such as conference and investor day transcripts. This intelligence can be connected to crowdsourcing platforms to collect information about potential investors and market analysis.

Artificial intelligence, virtual reality, and augmented reality are also being adopted in the corporate environment. AI is increasingly used for data analysis and process automation, assisting in identifying trends, predicting market dynamics, and improving decision-making. VR and AR technologies can create immersive experiences, such as virtual tours of facilities and presentations of results in digital environments. These technologies can also transform shareholder meetings by enabling simultaneous translation and hybrid formats.

While the specific technological innovations vary based on company size, economic sector, corporate governance maturity, and stakeholder demands, they all contribute to more efficient, rational, transparent, lasting, and sustainable dialogues and relationships between publicly traded companies and their investors.

The article concludes by highlighting that the future has arrived in the Brazilian capital market, propelling a new era of technology-driven investor relations.

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