April 4, 2025
As we move further into 2025, investor relations (IR) professionals are navigating an increasingly complex landscape shaped by economic uncertainty, evolving regulations, wide-ranging stakeholder expectations, market volatility and rapid technological advancements. These three topics in particular deserve your attention in 2025: trends in artificial intelligence (AI), the potential for heightened M&A activity, and shifting diversity, equity and inclusion (DEI) dynamics.
AI Integration
As companies continue to integrate AI into their workflows, 2025 may prove to be a pivotal year in the evolution of AI, including its use for IR. AI can help IR professionals streamline communication, enhance data analysis and improve engagement with investors. It can increase the effectiveness and efficiency of investor relations officers (IROs) in managing daily activities such as generating investor communications, analyzing investor sentiment, automating earnings calls and transcripts, leveraging predictive analytics for investor targeting, and enhancing financial modeling.
Based on a March 2024 NIRI survey, 44% of IR professionals had already integrated AI into their IR programs, and current usage probably exceeds 50% at this point. And, yet, there are reasons to be cautious – we must recognize and proactively manage the legal, accuracy and compliance risks through careful oversight, transparency and strong governance practices. And make sure legal counsel is involved in every step of your AI adoption!
Human expertise is essential to IR, and while AI won’t replace the IR function, IROs who know how to use AI may end up replacing those who don’t. The ultimate hope is that AI’s scalability and efficiency will give IROs more time to focus on strategic efforts such as counsel to executive teams, handling complex investor issues and concerns, storytelling, and building investor trust and relationships.
M&A Momentum
Dealmakers are optimistic and preparing for increased M&A activity in 2025. According to the latest Deloitte 2025 M&A Trends Survey, 79% of corporate executives anticipate higher deal volumes than in 2024, and 75% expect larger deal sizes – signaling strong confidence in strategic acquisitions. Positive macroeconomic factors, including possible interest rate cuts, business-friendly tax policies and a more favorable regulatory environment, would drive the M&A activity.
In addition, according to Diligent Market Intelligence’s Shareholder Activism Annual Review 2025, this year is poised for increased M&A-focused activism as activists target value creation opportunities, driven by an administration viewed as supportive of dealmaking.
Increased deal activity would mean IR professionals must stay ahead of and manage investor expectations, maintain market confidence and proactively communicate a strong M&A strategy.
DEI Dynamics
DEI has emerged as one of the most contentious topics of 2025, and there is no doubt that anti-DEI sentiment has become a growing consideration for IROs – fueled by factors ranging from the broader impact of the U.S. Supreme Court’s affirmative action decision to activism by Robby Starbuck, the National Center for Public Policy Research, and now the recent Executive Orders issued in early 2025.
Stakeholder views on social issues are polarized and companies are facing increased scrutiny from activist investors, institutional shareholders, regulators, politicians and consumers. Notably, shareholder fatigue is emerging – as activists on both sides push for more votes and influence, and companies are finding it increasingly challenging to balance these diverse perspectives while aligning with their business objectives. Board diversity goals, diversity-linked performance metrics and DEI programs in general are all under extreme scrutiny, and many companies are trying to strike a difficult balance among risk, reward and company values.
IROs can add value in this highly uncertain, volatile situation by proactively addressing investor concerns, focusing on long-term value, and collaborating with the human resources and ESG teams to ensure accurate and transparent communication and protect corporate reputation and shareholder value.
Dix & Eaton is actively tracking these and other trends and we look forward to sharing key insights with you throughout the year. If you have a specific topic or question, or would like a complimentary assessment of your current approach to addressing these issues in this rapidly shifting environment, contact me at arodenhauser@dix-eaton.com. And be sure to sign up for our weekly IR and sustainability newsletters.
