Company bosses warned against relying on artificial intelligence during AGM season

Company bosses have been put on notice by the peak advocacy bodies for Australian retail shareholders and big super funds over using artificial intelligence to speak for them during AGM season.

It follows at least two examples during last month’s reporting season where AI was used to help deliver financial results by ASX-listed companies.

Australian Shareholders Association chief executive Rachel Waterhouse said the biggest issue at play for retail investors was trust in management, adding they expected leaders to be their “authentic” selves by showing up for results and annual general meetings.

“Trust isn’t built on pressing play, it’s built when leaders front up in person,” she said.

“People stumble over words at times, some get nervous . . . it doesn’t need to be polished, and it doesn’t need to be polished with AI.

“CEOs and CFOs can find the time to practice, because the reality is that most of them do practice before they read their script. But AI use as far as someone else turning up, it’s just not acceptable.”

AI crept into Chris Ellison’s opening statement on Mineral Resources’ full-year earnings after the blunt-speaking Kiwi’s voice briefly changed into a posh English accent.

Mr Ellison denied using AI but said the statement had been pre-recorded, with MinRes later admitting the glitch came from using an AI software tool to edit the address.

The bizarre incident happened the same week Kogan chief executive Ruslan Kogan admitted on the company’s earnings call that he used AI-generated voices for himself and chief financial officer David Shafer for the prepared portion of their remarks as a stunt.

Mr Kogan said it was designed to be an example of how Kogan was harnessing technology to become more efficient.

While acknowledging the purpose of the Kogan stunt, Ms Waterhouse said it would be a “real concern” if avatars of CEOs and CFOs started turning up as a result of companies further harnessing the power of AI.

“I think all types of investors would have an issue with that,” she added.

Louise Davidson, chief executive of the Australian Council of Superannuation Investors, said it would “always expect” the chair and CEO to deliver results in person at annual general meetings.

“AGMs provide an important opportunity for shareholders to question and hold company leaders to account so we could always expect company leaders to be present,” she said.

ACSI is an influential proxy adviser to Australia’s biggest superannuation funds including AustralianSuper, Aware Super, Cbus, HESTA and Hostplus.

Public companies must hold their AGMs within five months after their financial year ends, with the majority being held between October and November.