Top investor urges boards to strengthen AI competency

Norway’s $1.7 trillion sovereign wealth fund, one of the world’s largest investors, is calling for improved AI governance at the board level across its portfolio companies. Carine Smith Ihenacho, the fund’s Chief Governance and Compliance Officer, highlighted the need for boards to not only understand how AI is being used but to also establish robust policies to ensure its responsible application. The fund, which holds stakes in nearly 9,000 companies, has already shared its views on AI with the boards of 60 major firms.

The call for enhanced AI competency in Norway comes as the fund has increased its focus on the technology sector, where it has significant investments in major tech companies like Microsoft and Apple. The fund’s emphasis is on ensuring that AI is used responsibly, particularly in high-impact sectors such as healthcare. Smith Ihenacho stressed that boards must be able to address key questions about their AI policies and risks, even if they don’t have a dedicated AI expert.

Despite its concerns, the fund supports the responsible use of AI, recognising its potential to drive innovation and productivity. The push for better AI governance is part of the fund’s broader strategy to maintain high standards in environmental, social, and corporate governance (ESG) across its investments.

As the AI sector continues to grow, the fund’s recommendations reflect a broader trend towards increasing accountability and transparency in the use of emerging technologies.