In-Short:
- Norway’s $1.7 trillion wealth fund urges boards to improve AI competence.
- The fund has advised nearly 9,000 companies on responsible AI integration.
- AI governance is a focus, especially in healthcare and Big Tech sectors.
- The fund’s tech investments grew by 12.5%, with tech making up 26% of its stock portfolio.
Summary of Norway’s Wealth Fund on AI Competence
Carine Smith Ihenacho, the chief governance and compliance officer of Norway’s massive sovereign wealth fund, has emphasized the need for corporate boards to enhance their understanding and governance of artificial intelligence (AI). The fund, which has a significant influence on global markets with stakes in around 9,000 companies, has been a pioneer in advocating for environmental, social, and corporate governance (ESG) issues. It has recently focused on the responsible use of AI to foster better economic outcomes.
While not all boards are expected to have an AI specialist, there is a collective need for boards to grasp AI’s relevance in their business and establish appropriate policies. The fund has communicated its AI governance expectations to the boards of its 60 largest portfolio companies, with a keen interest in the healthcare sector and Big Tech firms due to their profound impact on consumers.
Investments in tech companies, including giants like Microsoft, Apple, Amazon, and Meta Platforms, have led to significant growth in the fund’s stock portfolio, highlighting the critical role of technology and AI in the current economy. Despite the enthusiasm for AI’s potential to enhance efficiency and productivity, the fund stresses the importance of managing risks responsibly.
The Norwegian wealth fund’s approach to AI governance mirrors the global concern over the ethical use and potential risks of AI technologies. By requiring comprehensive AI policies at the board level, the fund is promoting the adoption of responsible AI practices across its extensive portfolio.
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