Investor Activists Are Now Targeting Your AI Strategy

Shareholder activists are increasingly targeting companies over their artificial intelligence strategies, criticizing slow adoption and vague communication. During the 2026 proxy season, activists like Starboard Value, Elliott Management, and Irenic Capital Management pressured TripAdvisor, London Stock Exchange Group, and Snap to accelerate AI deployment and better articulate AI plans. Companies face demands to demonstrate how AI investments translate into measurable outcomes such as cost savings, productivity gains, and revenue growth.

Julia Dixon is Vice President at Edelman Smithfield. This post is based on an Edelman Smithfield memorandum by Ms. Dixon, Patrick Ryan, Lex Suvanto, Christine O’Brien, and Stacy Turnof. Artificial intelligence is emerging as a new attack theme for shareholder activists. What many companies frame as a long-term innovation story is increasingly being viewed by activists as a short-term lever to drive unlock cost savings, improve productivity and accelerate growth. Activists are now targeting companies that are not moving fast enough to capture these benefits and not sufficiently communicating their efforts to the market. Early signs of this were visible during the 2026 proxy season as several activists made AI-related themes a central topic in their campaigns. In February, Starboard Value sent a letter https://www.starboardvalue.com/wp-content/uploads/Starboard Value LP Letter to TRIP Board CEO 02.17.2026.pdf to TripAdvisor arguing that the company should move faster to deploy AI capabilities, noting “we have repeatedly communicated that the status quo pace of change is unacceptable in an environment where speed matters and where incumbents are at risk of being disintermediated.” Also in February, Elliott Management urged London Stock Exchange Group LSEG to increase communication around its AI strategy. Elliott appeared to view investor concerns about AI-related disruption as overstated and pushed the company to more clearly articulate how its proprietary data assets and AI initiatives could support long-term growth and value creation. In March, Irenic Capital Management sent a letter https://www.businesswire.com/news/home/20260331059373/en/Irenic-Sends-Letter-to-Snap-Inc.-Co-Founder-and-CEO-Evan-Spiegel-and-Issues-Presentation-Outlining-Actionable-Steps-to-Unlock-Value and investor presentation https://savesnap.s3.us-west-1.amazonaws.com/SNAP+Back+to+Reality+-+03.31.2026.pdf to Snap that called for the company to rationalize costs, noting that “AI can and should replace many existing roles,” and “deploy AI properly” to drive monetization. A month later, Snap announced it would lay off 16% of its full-time staff and ramp up its AI adoption. Activists Criticisms Center Around Two Themes Activist engagement around AI is in its early stages, but two themes are emerging. First, activists question whether companies are moving fast enough. AI adoption has the potential to improve margins by cutting costs and/or increasing productivity in a broad range of sectors. Delayed adoption is viewed as leaving efficiency gains and margin expansion on the table. Second, investors are pushing companies to more clearly articulate their AI strategy. Vague AI messaging is becoming a liability as investors expect management teams to explain how AI investments translate into measurable outcomes such as product innovation or revenue growth. Even companies actively implementing AI can be challenged if they fail to clearly articulate a credible narrative. How Companies Are Talking About AI Today Companies across sectors are already discussing AI in investor communications. During the fourth quarter 2025 earnings cycle, 65% of CEO’s in a sample of 50 companies across 11 industries addressed AI in their prepared remarks. But the approaches vary widely and the details are often sparse. Many management teams position AI as part of broader digital transformation efforts. Earnings calls and investor presentations frequently highlight pilot programs, partnerships with major AI providers or internal productivity tools designed to improve efficiency. Others emphasize AI as a way to enhance or expand existing products or capabilities. Management teams of technology and software companies, for example, have recently framed AI capabilities as enhancements that improve functionality, customer experience or accelerate product development. However, these discussions are often high-level and tend to emphasize potential rather than quantifiable impact. We see companies using generic language such as “we continue to invest in AI capabilities across our platform,” “we are leveraging AI to streamline operations,” and “we see AI as a long-term opportunity.” As a result, investors are struggling to evaluate if AI initiatives represent a core strategic priority versus a superficial initiative. Companies with more advanced AI strategies are talking about their defined AI strategies, dedicated investment roadmaps, appointing AI leadership roles, or conducting organizational restructuring to support AI progress. The most advanced companies are disclosing measurable KPIs for AI impact. Click here https://www.edelmansmithfield.com/index.php/insights-building-ai-financial-narrative for a comprehensive report on AI financial narratives and investor expectations. Investors Will Increasingly Look to Whether AI Drives Revenue Growth As AI technology advances, investors will increasingly focus on the revenue side of the equation. Recent Edelman Smithfield research of more than 300 institutional investors found that investors now rank revenue contribution metrics as the most effective way to evaluate a company’s AI strategy. The investors pinpointed faster AI-related growth versus competitors as the most important AI-related investment driver, and clear AI implementation plans as the most important topic management should address when communicating about AI. AI is Likely to Become a Larger Activist Theme Looking ahead, AI has the potential to become a prominent theme in shareholder activism. The value proposition is straightforward: AI can drive growth, save costs, increase efficiency, and strengthen competitive positioning, precisely the levers activists target when building a case for change. While many companies are moving cautiously, balancing adoption with concerns around workforce impact, regulatory scrutiny and reputational risk, activists are less constrained by those considerations. Instead, activists will focus directly on the financial upside. Governance considerations will also become part of the AI conversation. As AI systems grow more advanced, investors and proxy advisors will increasingly focus on whether boards have the expertise necessary to oversee AI risks and opportunities. The Bottom Line: AI Strategy Is Becoming an Activist Battleground For companies, the takeaway is clear: AI is becoming a focal point for shareholder scrutiny. Companies should create and proactively communicate a coherent AI strategy that can deliver the value creation investors will expect. This includes not only articulating how AI drives growth and efficiency, but also explaining how the strategy will be implemented, how success will be measured and demonstrating that appropriate governance, oversight and risk management frameworks are in place. Otherwise, they risk being targeted by activists searching for new opportunities to unlock value creation.