AI ethics and regulation: How investors can navigate the maze

Artificial intelligence (AI) poses many ethical issues that may translate into risks for consumers, companies and investors. AI regulation, which is developing unevenly across jurisdictions, adds to the uncertainty. The key for investors, in our view, is to focus on transparency and explainability. The ethical issues and risks of AI begin with the developers who create the technology. From there, they flow to the developers’ clients—companies that integrate AI into their businesses—and on to consumers and society more broadly. Through their holdings in AI developers and companies that use AI,...