Norways wealth fund pushes AI governance
Importance of AI in Modern Governance
Companies should do more to understand AI at board level to ensure it is being used in a proper manner and to minimize risks, according to a top official at Norway’s $1.7 trillion sovereign wealth fund—one of the largest investors globally—who spoke to Reuters. More systematically, firms generally need to do more, says Carine Smith Ihenacho, Chief Governance and Compliance Officer at the fund.
“Overall, a lot of competence building needs to be done at board level,” she said in an interview this week.
The Need for Collective Understanding of AI
“It doesn’t mean we need one AI person that’s an expert on AI We need the board to understand, as a group, how AI is being used have a policy at board level and .Last August, the fund said it is focusing on the use of AI in the healthcare sector because the technology will have an especially strong impact on consumers.
The fund is also paying special attention to Big Tech companies since they develop AI-based products.
Establishing AI Policies at the Board Level
There the fund has been pushing for the tech companies to have proper regimes in place to understand the risks that AI products present.
“What we spend more time on there is on the governance structure,” she said. “Is the board involved? Do you have a proper policy on AI?”
Among the fund’s ten largest equity holdings are nine technology companies, including Microsoft,,, and. These companies helped drive a 12.5% return on the fund’s stock portfolio in the first half of this year.
Investment Strategies and AI Impact
That means that around 26% of equity investments in the fund are in tech, up from 21% at this time last year, so the sector’s performance has direct bearing on the fund’s overall return.
While the fund does not want to “discourage the use of AI,” companies must develop it in a responsible way, said Smith Ihenacho.
“It’s fantastic what AI may be able to do to support innovation, efficiency and productivity. We support that She did not name specific companies, but the fund has “shared its view with the boards of 60 of the fund’s largest portfolio companies” on AI, it said in a 2023 report on responsible investments.
Responsible AI Development
Last August, it said it is focused on how AI will be used within the healthcare sector since the technology is going to affect consumers more than other areas.
It has also said it is paying special attention to Big Tech companies since they develop AI-based products.