Not quite football, but just as exciting: Reporting from the DIRK 2024 conference

It’s July 2024 and the whole of Germany is gripped by football fever. Well, almost all of Germany...

On July 1 and 2, the IR community met in Frankfurt – not far from the Waldstadion, home of Eintracht Frankfurt – for the German Investor Relations Association (DIRK) conference.

The body has now been in existence for 30 years and many members have known each other for just as long. As a result, a team spirit has developed and a tournament-like atmosphere was created as high-caliber teams presented their strategies on various topics in different panels.

The focus was on exchanging ideas and finding new sources of inspiration. The highlight was, as every year, when the best German IR teams were honored at the end of the second day and the young talents, graduates of the current Certified Investor Relations Officer (CIRO) course, were presented.

There were certainly parallels with sporting excellence here, as everyone enjoyed the success of the winners and looked closely at what one might be able to take from them. It is not known whether the young talents were scrutinized for their transfer potential, but you never know...

Game changers

The theme of this year’s conference was ‘Artificial intelligence – hype or game changer for investor relations?’. While football fans outside passed by for the Euro 2024 match between Portugal and Slovenia, an algorithm was literally being designed inside for a better understanding of the emerging technology.

AI is a game changer in many respects and, even if many legal and technical questions are still unanswered, it is certainly here to stay. We all need to look at the opportunities, risks and possible use-cases. Automated translations are just one example of what is conceivable in terms of relieving processes.

Especially in small IR teams, capacities can be used even more optimally in the future. Over the next few years, AI applications will be gradually integrated into IR work – and in the best-case scenario will make a significant contribution to an efficient IR world.

In German-speaking countries, the layout of annual financial reporting has traditionally been a high priority. Here, too, AI applications are increasingly creating new interfaces that bring systems and processes even closer together. The annual report of the future will certainly be elevated to a whole new level of digital entertainment. This would be a very welcome change, not least in times when the traditional reporting medium is becoming increasingly bloated due to regulations.

Regulation, or the offside trap

Whether it’s the Corporate Sustainability Reporting Directive, EU Listing Act, MiKaDiv –Germany’s new notification procedure for capital income tax on dividends from shares and DRs – or one of many more, the onset of new regulations is never-ending.

No matter how well organized the IR departments are, they are constantly required to ensure or support proper disclosure in close co-ordination with other internal departments such as legal, compliance, sustainability or tax.

No sooner do you think you have everything safely in place than a new regulation comes out and renders you offside. Currently, a multitude of undefined legal terms, unclear formulations and delayed legislative procedures pose additional challenges.

Shaking hands

Especially in times of constant and accelerating change, regular dialogue within the IR community is invaluable. The DIRK conference is a unique platform for this, where issuers can meet in a spirit of trust and on an equal footing. This enables us as a team to overcome challenges together and further improve IR work.

The same applies to the CIRO degree program, which our team member Ivana Blazanovic decided to join after nine years of professional experience. She also stood on the stage this year and was ceremoniously recognized as a young talent. Her motivation was to further consolidate the many aspects of IR work and gain an up-to-date overview of them all.

After all, good IROs these days must have complete mastery of everything: accounting expertise and finance experience, the ability to write and explain good (equity) stories, website coding, event organization, consulting and moderation – not to forget a thorough grounding in law.

Along the way, Ivana has built up a robust network with her fellow students to discuss everyday IR issues. Thus, the DIRK team spirit is carried on into the next generation.

In conclusion, the DIRK conference taught us that AI is already present in all areas, but we are often not even aware of it. It should be seen as an opportunity, not as competition. Humans are relieved by machines, not replaced!

At the same time, we must always remain flexible regarding new approaches, ideas and solutions. The field of IR excellence is constantly changing and AI gives us freedom by completing mindless tasks for our own creativity.

Near the end of the event, passing Dutch fans – who delighted the sporting world with their creative Naar links, naar rechts dance – celebrated their team’s victory over Romania, reflecting the high spirits inside the DIRK conference.