ESG & Investing

‘AI Blowback’ Angst Grips ESG Investors Who Bet Big on Tech

  • NY pension is ‘actively monitoring’ how companies use AI
  • Concern is that the technology has potential to go ‘rogue’

Photographer: Kirill Kudryavtsev/AFP/Getty Images

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ESG fund managers who turned to big tech as a low-carbon, high-return bet are growing increasingly anxious over the sector’s experimentation with artificial intelligence.

Exposure to AI now represents a “short-term risk to investors,” said Marcel Stotzel, a London-based portfolio manager at Fidelity International.