The spectrum of risks arising from AI is wide. On one end lie doomsday scenarios involving ‘super-intelligent’ AIs that their creators can’t understand or control. More immediate threats include the spread of misinformation from Large Language Models (LLMs), which are liable to ‘hallucinate’ - conjuring false facts or misinterpretations.

The complexity of the technology and difficulties in containing it are reflected in the efforts of regulators, which are mobilising but with little global cohesion. Industry-wide attempts to self-regulate have also gained little traction. 

But the burden isn’t just regulatory. Large holders of capital have proven their ability to move the needle on existential issues by engaging with companies on environmental, social, and governance (ESG) issues such as climate change or employee welfare, and holding firms to account for transgressions. Given the potential dangers related to artificial intelligence, now is the time for investors to assess their investees’ use of this powerful tool.

The future is not yet written

Industry leaders such as OpenAI’s Sam Altman or tech pioneers like Elon Musk have already voiced their desire for improved AI safety. In a recent study, the Centre for the Governance of AI (GovAI) proposed a 50-point list detailing best practice when it comes to artificial intelligence. The measures were shared with academics and business leaders from companies including Google’s AI-focused DeepMind, and Anthropic. The vast majority agreed with the proposals, which included evaluations of dangerous capabilities and developing safety restrictions. 

This seems encouraging. Yet companies have been slow to implement such measures. Few organisations currently have an AI risk committee or internal audit teams, for instance. Worrying too are recent cuts to ‘responsible AI teams’ at companies including Microsoft, Meta, Google, and Amazon. Today’s tech transformations have come at a time of cost-savings and recession-proofing. 

The need for greater safety measures will only increase as the technology becomes more sophisticated. OpenAI, for example, has provided less information on the architecture behind its latest ChatGPT than it did for earlier iterations, both for competitive reasons, but also - they say - to minimise the risk of the underlying technology being exploited by bad actors. Companies could soon find themselves caught in an uncomfortable bind, compromising transparency for the sake of safety and market leadership.

Nevertheless, there are ways to mitigate these dangers. Though wary of sharing the secrets of ChatGPT, OpenAI has announced that it plans to commission third-party audits of its AI models in the future. Participants in GovAI’s study were also willing to employ third-party audits and risk assessments. Greater auditing of AI companies could well be a necessary step as concerns over the abuse of AI increase. 

Past, present, and future

This is not the first time companies have had to change their behaviour in response to an existential threat. In 1988, the NASA scientist James Hansen said: “the greenhouse effect has been detected and is changing our climate now”.

Responding to the environmental crisis has seen sustainable capitalism emerge as a serious force for effecting positive change. Regulators set the tone, but money talks. The threat that it can also walk when companies fail to adhere to standards has forced businesses to think more seriously about their environmental impact. 

Click on the following link to read the full article : Rise of artificial intelligence underlines role of ESG analysis (fidelity.be)

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