What is ethical AI investing?

Ethical AI investing is an investment strategy focused on selecting companies that develop and use artificial intelligence in a manner consistent with ethical principles, social responsibility, and environmental sustainability, while avoiding those with questionable AI practices.

How do I identify ethical AI companies?

Identifying ethical AI companies involves researching their public AI ethics principles, governance structures, transparency reports, and how they address issues like algorithmic bias, data privacy, and human oversight in their AI development and deployment.

Can ethical AI investing still generate good returns?

Yes, ethical AI investing can generate competitive returns. Companies with strong ethical AI practices often demonstrate better risk management, build stronger reputations, attract talent, and avoid costly ethical missteps, which can contribute to long-term financial performance.

What are the main ethical concerns with AI?

Key ethical concerns include algorithmic bias, data privacy and security, job displacement due, and the potential misuse of AI in surveillance, autonomous weapons, or for generating misinformation.

Are there ETFs or mutual funds for ethical AI investing?

Yes, a growing number of ETFs and mutual funds are emerging that focus on ethical AI or broader ESG criteria with an emphasis on technology governance. Always review their specific screening methodologies and holdings to ensure alignment with your values.

How can I engage with companies as an ethical AI investor?

You can engage with companies through shareholder activism by voting proxies on AI-related proposals, communicating directly with management about their AI ethics policies, and supporting shareholder resolutions that advocate for responsible AI practices.

What is the EU AI Act and how does it relate to ethical AI investing?

The EU AI Act is a comprehensive regulation categorizing AI systems by risk and imposing strict requirements on high-risk applications. It provides a legal framework for ethical AI, which investors can use as a benchmark to assess companies' compliance and commitment to responsible AI development.

Ethical AI Investing: Aligning Your Portfolio with Values |…