Understanding AI opportunities

The report states AI presents significant investment opportunities when deployed responsibly, particularly through efficient resource allocation, improved service delivery and accelerated scientific research. AI and big data investments outperformed broader markets between 2022 and 2025. Goldman Sachs estimates AI adoption could increase annual global GDP by 7% over a decade, while AI attracted 50% of global venture funding in 2025, totalling US$202.3 billion, up 75% from 2024.

Institutional investors are encouraged to invest not only in AI applications, but also in assurance technologies and alternative AI infrastructure supporting trustworthy systems.

Understanding AI risks

The report identifies material risks associated with AI deployment across sectors, including bias and discrimination, privacy breaches, workforce displacement, environmental impacts, data quality concerns, intellectual property risks and malicious AI use. Frameworks from the World Economic Forum, Institutional Limited Partners Association and Reframe Venture broadly align on these risks.

The paper argues many AI risks are systemic and non-diversifiable, threatening long-term portfolio performance and economic stability. Majority Action states investors must protect portfolios from system-wide risks while compensating for insufficient AI regulation through stronger governance expectations.

Environmental risks linked to data centre expansion are highlighted, including rising energy and water demands and increasing regulatory and reputational pressures. A March 2026 study also found more than 150 pension funds held investments linked to potentially militarised AI systems, with current due diligence considered inadequate.

Principles for responsible and trustworthy AI

Frameworks from UNESCO, OECD and NIST promote AI systems that are reliable, safe, secure, transparent, explainable, privacy-enhanced and fair. Governance is identified as the foundation enabling these principles to operate effectively.

The report recommends investors use these frameworks to assess whether portfolio companies have robust governance structures capable of managing evolving AI risks and opportunities.

Consultant, OCIO & manager engagement

Institutional investors are encouraged to engage asset managers, consultants and outsourced chief investment officers on AI governance, risk management and responsible deployment practices. Suggested engagement areas include AI expertise, integration of AI risks into investment strategy, due diligence processes and portfolio-level monitoring metrics.

The report states direct engagement helps align responsible AI expectations across investment partners and supports stronger implementation of governance standards.

Portfolio level engagement

The report highlights company engagement as essential for assessing governance structures, accountability and risk management practices. Reframe Venture’s Responsible AI Due Diligence Tool and Railpen’s AI Governance Framework are presented as practical resources for evaluating AI preparedness, governance maturity and supply chain risks.

The frameworks are intended to support ongoing investor dialogue rather than pass/fail assessments.

Policy engagement

The report states policymakers have struggled to keep pace with AI development, creating opportunities for investors to influence emerging standards. Investors are encouraged to participate in consultations, submit regulatory feedback and engage with investor coalitions focused on AI policy.

Just transition considerations

The paper links workforce displacement, environmental burdens and social inequality to broader portfolio risks. Investors are encouraged to assess AI through a just transition lens, particularly where climate and inequality risks intersect.

Network engagement

The Intentional Endowments Network supports investor collaboration on responsible AI through events, peer learning and governance resources, including the Investor AI Resource Hub.