Alphinity Investment Management partners with Australia's national science agency, CSIRO, to aid the development and integration of responsible artificial intelligence.
In partnership, the companies will develop a framework to help the investment community assess responsible artificial intelligence (AI) practices and integrate them 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 practices and provide a framework to assess, manage and report on responsible AI risks.
Alphinity defines responsible AI as the practice of developing and using AI systems in a way that provides benefits to individuals, groups, and broader society while minimising the risk of negative consequences.
Alphinity's Head of ESG and Sustainability, Jessica Cairns, says AI technology presented 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," says Ms Cairns.
"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."
"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."
"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," Ms Cairns says.
With Responsibility at the forefront of solution development, CSIRO collaborates with industry, government, universities and research organisations.
CSIRO then uses its 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.
Liming Zhu, Research Director at CSIRO, who leads the Responsible AI Initiative, says: "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," says Zhu.