Is Artificial Intelligence helping or hindering ESG ?

At the moment, AI is capable of improving corporate ESG – but at the same time, throws up major risks to ESG outcomes – real stings in the tail, for the unwary.

Ways that AI can enhance ESG:

• Artificial intelligence by definition can take on lots of data and form conclusions (human-like problem-solving machinery, learning from data-sets).  As such, AI can improve a firm’s ESG in areas such as scanning horizon risks and supply chain monitoring,
• AI should be capable of running scenario-testing, based on machine learning of prior published experiments or historic events in a company or sector,
• AI seems well-placed to be an optimising force – a tool to analyse data sets and point out gaps, suggesting how to tweak and fill, so as to improve data-set completeness.

As such, AI has characteristics that can improve outcomes for companies looking to be more environmental, social and governed (ESG).

The sting in the tail: AI presents the following risks:

• Unreliable reporting.  Churning through data-sets does not always lead to sensible reporting,
• Report readability can be heavily compromised, meaning lost, logical fallacies and bias,
• Hallucinatory outcomes and unnatural conclusions find their way in,
• None of the subtleties of human interaction or cultural nuances,
• Perhaps the biggest problem; the non-ESG carbon footprint of AI itself, because its’ calculations can consume so much electricity and resources

Sensible humans, running an equally intelligent platform, is how SEEIO delivers transformational governance:

• Good governance, by thinking humans, assisted by automation of the right processes,
• SEEIO’s power tools are automated to take care of routine manual steps,
• SEEIO does the document management, captures risk, organises objectives, creates board calendar and diary reminders – all of which are major time-savers,
• SEEIO keeps human decision-makers fully in charge of the powerful outcomes – the brain-power of your team well and truly at the forefront, because all fields are editable for your remark and direction, concise summaries come to you for cross-checking and you control how the governance drives.

People – and automated governance.

Committed Founders and your enthusiastic involvement – keeps SEEIO reliable and trustable.

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