DealLawyers.com Blog

Morgan Stanley recently addressed how activist campaigns are raising AI-related criticisms. Complaints usually reflect the activists’ belief that companies should be more aggressively using AI to cut costs or to move into new markets.

Activists are making specific asks around AI, including:

– Margin improvement tied to AI-enabled efficiency

– More explicit articulation of AI strategy in investor materials

– Use of AI to improve sales productivity, onboarding or customer engagement

– Capital allocation changes linked to AI transformation

In some cases, they are even seeking board changes to strengthen oversight of technology‑enabled operational transformation.

While not yet a common point, the article predicts that spending discipline might start popping up in campaigns.

Morgan Stanley says that usual channels of communications – earnings calls, investor presentations and market updates – should be treated as opportunities to communicate the following to investors, plus how you’re positioned relative to peers:

– How is AI being deployed to improve efficiency or margins?

– Where can it drive incremental growth or open new revenue streams?

– How will progress on AI be monitored and communicated over time?

– Meredith Ervine