There are many similarities between two recent trends, namely artificial intelligence (AI) and environmental, social, and corporate governance (ESG). Responsible investing has been around for a long time, so has machine learning – yet each has experienced triggers that pushed the investment world into a state of frenzy.
By now nearly every fund manager and most companies claim to have an ESG policy, and soon they are just as likely to state that AI is integrated into their processes. The intent might be well-meaning yet the evidence that much has been or can be achieved is wanting.