AI is reshaping industries, and boards need to step up. As reported by Reuters, Norway’s $1.7 trillion sovereign wealth fund, which holds stakes in nearly 9,000 companies globally, is calling on boards to address AI governance now to drive responsible innovation.
“Companies need to do more to get to grips with AI at board level to govern how it is being used and to minimize risks,” said Carine Smith Ihenacho, Chief Governance and Compliance Officer of Norges Bank Investment Management.
Boards should establish governance frameworks and ask critical questions like, “What’s our AI policy? Are we high or low risk? Where does AI meet customers?”
26% of the fund’s equity investments are in tech, making AI governance critical.
The fund has pressed 60 of its largest portfolio companies on responsible AI use.
AI offers innovation and efficiency, but boards must understand its impact.
