How is Norway's sovereign wealth fund using AI?

The fund uses AI, specifically large language models, to screen companies for potential links to forced labor, corruption, and fraud upon their entry into the equity portfolio.

What are the benefits of AI screening for the Norway fund?

AI screening helps the fund identify and sell risky investments rapidly, often before broader market reactions, thereby avoiding potential financial losses.

Why is AI particularly useful for emerging market companies?

AI is especially useful for researching smaller companies in emerging markets where data coverage is limited and international media reporting may be scarce.

Home / Business and Economy / Norway Fund Uses AI to Root Out Corruption

Norway Fund Uses AI to Root Out Corruption

26 Feb

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Summary

AI scans companies for forced labor and corruption risks.
Fund sells investments before broader market reacts to risks.
AI is crucial for researching smaller emerging market companies.

Norway Fund Uses AI to Root Out Corruption

The world's largest sovereign wealth fund, managed by Norway, has implemented artificial intelligence to scrutinize its vast investment portfolio for risks. This sophisticated AI system is designed to detect potential ties to forced labor, corruption, and fraud within companies.

Since January 2025, the fund's operator, Norges Bank Investment Management (NBIM), has utilized large language models to screen all newly added equity investments within 24 hours. This rapid analysis scans public information that might be overlooked by conventional data providers.

NBIM reported that this AI-driven approach has allowed them to identify and divest from concerning companies before these risks become widely known. This proactive strategy has helped the fund avoid potential financial losses.

The fund also highlighted AI's particular utility in researching smaller companies, especially those in emerging markets. Such companies often have limited data coverage from vendors and may not attract international media attention, making AI an essential tool for comprehensive risk assessment.

Disclaimer: This story has been auto-aggregated and auto-summarised by a computer program. This story has not been edited or created by the Feedzop team.