Alphinity and CSIRO partnership to help investors navigate the responsible application of artificial intelligence
Boutique active equities fund manager, Alphinity Investment Management (Alphinity), has unveiled a partnership with Australia’s national science agency, CSIRO, to develop a framework to help the investment community assess responsible artificial intelligence (AI) practices and integrate into ESG considerations.
Informed by interviews with businesses using or planning to use AI, the year-long research program will result in a report identifying current best practice and provide a framework to assess, manage and report on responsible AI risks.
Responsible AI is the practice of developing and using AI systems in a way that provides benefits to individuals, groups, and wider society, while minimizing the risk of negative consequences.
Alphinity’s Head of ESG and Sustainability, Jessica Cairns, said AI technology was presenting investors with a new set of ever evolving challenges and greater insight was needed to guide investment decisions.
“AI will present significant opportunities to improve company performance, but we foresee potential risks in areas of governance, social licence, and operations, and investors will increasingly need to identify these.
“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,” Ms 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,” Ms Cairns said.
“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, who leads the Responsible AI Initiative, said: “This unique partnership will combine the investment community’s deep expertise with CSIRO’s cutting-edge scientific understanding of AI risks and opportunities. This 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.
“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.”
About Alphinity Investment Management
Alphinity is an active, boutique, equities investment manager based in Sydney and majority owned by its staff. Alphinity has dedicated experienced teams managing both Australian and global equity funds. The company was established in 2010 with its founding partners having managed Australian investment funds together on the same basis since the early 2000s, providing extensive industry experience and a strong track record of managing equities portfolios through a variety of market conditions. In 2015, Alphinity expanded to include a highly experienced and dedicated global investment team applying the same philosophy and process to the large set of investment opportunities outside of Australia.
About CSIRO
As Australia’s national science agency, we solve the greatest challenges through innovative science and technology. We are thinkers, problem solvers, leaders. We blaze new trails of discovery. We aim to inspire the next generation. We collaborate with industry, government, universities and research organisations to turn big ideas into disruptive solutions. We use collaborative research to turn science into solutions for food security and quality; clean energy and resources; health and wellbeing; resilient and valuable environments; innovative industries; and a secure Australia and region.
