Companies need more AI competency at board level, Norway's wealth fund says

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ARENDAL, Norway : Companies need to do more to get to grips with AI at board level to govern how it is being used and to minimise risks, a top official at Norway's $1.7 trillion sovereign wealth fund, one of the world's largest investors, told Reuters.

FILE PHOTO: The trading floor of Norges Bank Investment Management, the Nordic country's sovereign wealth fund in Oslo, Norway, June 2, 2017. REUTERS/Ints KalninsARENDAL, Norway : Companies need to do more to get to grips with AI at board level to govern how it is being used and to minimise risks, a top official at Norway's $1.7 trillion sovereign wealth fund, one of the world's largest investors, told Reuters.

A year on, companies generally need to do more, said Carine Smith Ihenacho, the fund's Chief Governance and Compliance Officer. "They should know: 'what's our policy on AI? Are we high risk or low risk? Where does AI meet customers? Are we transparent around it?' It's a big picture question they should be able to answer," she added.

The fund is also paying special attention to Big Tech companies since they develop AI-based products. Nine out of the ten biggest equity holdings in the fund are tech companies, including Microsoft, Apple, Amazon and Meta Platforms. These companies helped drive a 12.5 per cent return on the fund's stock portfolio in the first half of this year.

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