Fund managers should do more with the companies they deal with to address artificial intelligence issues, according to Hermes Investment Management director Dr Christine Chow.
“Applying AI carries its fair share of risk, but where there is risk, there is also opportunity,” Chow told Funds Europe.
Engagement is key, she said. But expertise and knowledge are necessary if stewardship is to be effective. It is a form of computer science, after all – one that is progressing rapidly with constant new developments in the field.
Many environmental, social and governance analysts without the right know-how find AI difficult, Chow said.
She recently attended the annual general meeting of mega-corporation Alphabet, parent company of Google, and has called on the firm to lead a responsible AI practice.
The yearly meeting is a chance for investors to engage with Alphabet and discuss possible directions for the company to take as it continues to grow. Neither chief executive Larry Page, nor president Sergey Brin attended, however.
Stewarding the California-based multinational, said Chow, is a challenge.
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