ANALYSIS: Three Ways AI Can Scuttle the ‘S’ in ESG Investing

With the emergence of artificial intelligence, companies that build AI infrastructure or put it to use show a lot of promise as sources of healthy investment returns. But as investors rush to AI, there is the potential that the “S” in ESG gets pushed to the sidelines.

For some investors, the “social” component in the environmental, social, and governance package is an important part in evaluating companies. If a company overpromises the benefits or fails to recognize the downsides of AI—particularly with regard to its impact on and treatment of people—such investors are likely to take their money elsewhere.

Three ...