New regulation and industry efforts point to sources of portfolio risk — particularly of the Social ESG type — for both developers and deployers of AI systems. As the technology advances quickly, governments and companies are stepping up efforts to ensure it is not prone to misuse and abuse.
Investors should start monitoring where shortfalls could occur, in the same way other ESG risks are managed. New rules such as the EU’s AI Act and companies’ disclosures can provide guidance and key information to mitigate risks.
Explore more on this topic in our latest Perspectives report.
