Alphinity teams up with CSIRO on responsible AI framework
A year-long research programme by Alphinity Investment Management and Australia’s national science agency CSIRO aims to identify best practice and provide a framework to assess, manage, and report on responsible artificial intelligence (AI) risks.
Responsible AI is the practice of developing and using AI systems in a way that will provide benefits to individuals, groups, and wider society, while minimising the risk of negative consequences.
The research will be informed by interviews with businesses using or planning to use AI and will integrate into ESG considerations.
According to Jessica Cairns, Alphinity’s head of ESG and sustainability, AI presents “significant opportunities to improve company performance”, however, there are potential risks in areas of governance, social licence, and operations.
“We’re inviting companies that are more advanced in their adoption of AI, or are actively exploring AI application, to participate and share information with us on their experience and thinking on the impact and responsible application of artificial intelligence across every facet of their business,” Cairns said.
“Our work with CSIRO will contribute to increased awareness and knowledge of responsible AI considerations within the investment community. We hope the case studies and other data will also assist companies at the start of their AI journey to implement best-practice considerations.”
Earlier this year, the firm identified that getting the growth of AI wrong can present a greater problem than climate change and should be considered as part of an ESG application.
It had highlighted stocks such as Microsoft and Google, which both have a chatbot option and Apple and Amazon, which produce smart home devices, self-driving car companies, and healthcare companies.
Alphinity also noted that AI was excluded from the UN Sustainable Development Goals (SDGs), making it important for firms to build their own frameworks.
Cairns added: “From our perspective, it will create a foundation for the longer-term development of frameworks for analysis and robust modelling of responsible AI within our broader set of ESG performance and risk analysis.”
CSIRO research director, Liming Zhu, said the collaboration aims to empower Australian businesses to attract global investments.
“Australia can lead the world in the responsible development and use of artificial intelligence, but to practically achieve that we must bring diverse skill sets together and develop measurements and tools to support implementation,” said Zhu, who led the Responsible AI Initiative.
“This project will give us insights into the AI risks and opportunities companies are grappling with and provide guidance around best practices that will help both investors and companies.”
AUTHOR
Rhea Nath
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