Achieving effective AI governance – from theory to practice

AI is becoming increasingly common in business practices, generating significant opportunities as well as material risks across sectors and therefore investment portfolios.

Achieving Effective AI Governance, produced with Chronos Sustainability, provides an introduction to how AI systems are classified and the risks they pose to portfolio companies.

To helps investors assess companies' approaches to AI risk management, it includes our AI Governance Framework (AIGF) that translates responsible AI principles into actionable practices. Although the long-term risks, opportunities and capabilities of AI remain largely unknown, the AIGF supports investors’ ability to assess portfolio company preparedness for these uncertainties and work more effectively in partnership with them.

The reports seeks to answer the following questions:

• Why should investors be paying attention to AI?
• How can investors assess the significance of AI to their portfolios?
• What can investors do to manage AI risks at portfolio companies?

We also share recommendations for investors that supports collective action in responsible AI management.