Norway wealth fund advises companies to use AI responsibly.
Norway wealth fund advises companies to use AI responsibly.
Norway’s Wealth Fund Urges Responsible AI Engagement for Profitable Business
/cloudfront-us-east-2.images.arcpublishing.com/reuters/W36SQB2XWVI7DBKQ3KLDVMWOUE.jpg)
OSLO, Aug 15 (ANBLE) – Norway’s $1.4 trillion wealth fund, the world’s single largest stock market investor, is urging firms it invests in to engage with artificial intelligence as a way to drive profits, but to do so responsibly, top officials told ANBLE.
Fund CEO Nicolai Tangen said it was crucial for all firms in its portfolio to engage with AI, as it is “potentially a massive driver for productivity and efficiency” that is becoming an everyday business tool like power, computers or the internet.
“In an interview, Tangen stated,”We of course expect them to use AI for the best possible benefit of the business. AI is a huge opportunity for companies and for society, but we need to make sure that it is used in the right way.”
Tangen went on to boldly state that a company that would not engage with AI “would disqualify themselves as being complete morons”.
Norway’s wealth fund, known for its responsible investing approach, currently invests in 9,200 firms worldwide. It sets expectations on a range of issues, from children’s rights to climate change. In its latest document, to be published Wednesday, the fund places a heavy focus on AI and consumers’ interests.
- Downed power lines may have caused Maui’s wildfires.
- Instacart prohibits shoppers from providing paper receipts to custo...
- Moving cities changed my perception of owning a house.
When engaging with firms about responsible AI, the fund will concentrate particularly on the healthcare, finance, and large tech sectors. This focus stems from the recognition that their use of the technology will have a particularly strong impact on consumers.
According to the document, companies must be able to explain why they are developing specific AI systems and provide details on how they have been designed, trained, and tested. Effective human oversight and control are essential. This ensures that individuals affected by the outcomes can address the company directly, asking questions such as “how does your algorithm work? Why did I not get the loan?” The fund’s chief governance and compliance officer, Carine Smith Ihenacho, emphasized the importance of transparency and accountability in AI development.
The fund also expects companies to be proactive in managing AI-related risks and to have systems in place to address any issues that may arise. In particular, the top tech companies leading the development of AI technology must take on special responsibility. The fund, being a significant investor in Microsoft, Amazon, Alphabet, and Nvidia, has already discussed AI with these companies. Smith Ihenacho expressed that while recent self-regulation moves by U.S. tech giants were a good start, more comprehensive regulations are necessary.
“We have done it and we will continue to do it,” Smith Ihenacho stated, expressing the fund’s commitment to engaging with companies on responsible AI. “That is where there is room for investors like us to come in and fill the gap.”
The technology sector is the largest sector in the fund’s equity investments, representing 11.9% of its total value at the end of 2022. Dialogue with companies and voting at annual general meetings form the core of the fund’s environment, social, and governance (ESG) approach. However, the fund also has the power to divest from companies that do not comply with its requirements. Last year alone, it divested from 74 firms on these grounds.
Norway’s wealth fund understands that AI has the potential to drive profitability and efficiency in businesses. By urging the firms it invests in to responsibly engage with AI, the fund aims to ensure that this powerful technology is harnessed for the benefit of both companies and society. The fund’s commitment to responsible investing and its role in engaging with tech giants underscore its mission to shape the future of AI in a way that prioritizes transparency, accountability, and the best interests of consumers.
/cloudfront-us-east-2.images.arcpublishing.com/reuters/C3PRREBAOZJQRMCCQC5YZHE2UM.jpg)
/cloudfront-us-east-2.images.arcpublishing.com/reuters/3CERJUJZVZKOREQWDT2TMLM4LA.jpg)
/cloudfront-us-east-2.images.arcpublishing.com/reuters/PJ2O4DP37NJL3I737M4ITFX6RI.jpg)
