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Artificial Intelligence is becoming embedded in institutional investors’ company research but one thing has remained constant with stock selection: It is overwhelmingly company-first. A recent BNY survey of 50 institutional investors across regions shows business quality, management credibility and valuation form the primary criteria foundation. However, market context is increasingly shaping which companies earn attention and how quickly conviction builds.
Investors surveyed describe running a layered comparison test, evaluating a company on its own merits and then against peers, themes, benchmarks and macro scenarios. IR's job is no longer just telling a good company story — it's helping the company win that relative comparison. Two structural shifts stand out:
- Most institutional investors are using AI in the research process (84% of firms use it, another 12% are piloting it), compressing first-pass research from weeks to minutes and raising the premium on clear, consistent, discoverable disclosure. If AI can't cleanly summarize "why this company," the company may lose the early comparison test before a human engages.
- Macro volatility does not uniformly change behavior. Investors split 50-50 on whether it shortens holding periods or speeds up reviews. Many want company-specific impact commentary rather than generic macro noise.
Across regions and tiers, management quality and trust remain the top-rated factors, serving as the anchor of the investment decision.
Key Takeaways for Investor Relations Teams
- Management quality is still the anchor. It ranked #1 in open-ended responses (credibility/trust #2, governance #3). Investors want capital allocation integrity, a tested strategy management sticks to, and clear translation of competitive advantage into financial outcomes.
- Win the relative comparison, not just the absolute story. IR teams should articulate why the company deserves capital relative to peers, substitutes, and benchmark constituents. Even "absolute" investors compare before acting.
- Assume AI is already telling your company story. With 84% adoption, investors use AI to summarize filings, build peer landscapes, and pressure-test theses in minutes, putting a premium on clarity. Investors say companies with clean segmentation, stable terminology, explicit KPIs, and consistent messaging are easier to compare. With LLMs in the mix, vague or contradictory disclosure is now a disadvantage.
- During volatility, "say what matters," not "say more." Investors split evenly on whether to communicate more during turbulent periods. Communicate when there's a definable business impact and use normal reporting cadence when there is not.
84%
of survey respondents said they use AI in the decision-making process
12%
say they are piloting AI in the decision-making process
4%
say they don’t use AI in making investment decisions
What I seek is a clear business model. Is the company a leader in its respective market? What defines its competitive advantage? And importantly, can the company sustain its business model moving forward?
Methodology
In the summer of 2026, BNY conducted a survey of 50 institutional investors across North America, EMEA and the Asia-Pacific region, representing US $3.8 trillion in Assets Under Management (AUM).
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