Robocap: Negative impact from growing use of AI expected to worsen
Research from fund manager Robocap finds the technology will be detrimental to ESG issues and cost jobs over the next three years. Pension funds, insurance asset managers, family offices and wealth managers who collectively manage $513 billion in assets were surveyed.
New global research with institutional investors and wealth managers managing assets of $513 billion from leading fund manager Robocap, finds almost all (97%) believe the negative impact from AI on major ESG issues - such as energy consumption and weakening of democratic rights - will worsen over the next three years.
More than two-fifths (44%) of respondents say these negative impacts will dramatically increase, while 53% they will worsen slightly. Further, while 71% of investors say there is enough transparency around the potential impact on ESG issues from certain AI technology and programmes, 29% say the level of clarity is poor.
The study - which covered global senior executives at insurance asset managers, pension funds, family offices and wealth managers – also reveals widespread concern about the erosion of job security by AI in the financial sector.
More than two-fifths (43%) of investors say AI will impact all finance roles to some extent; 38% say it will fundamentally redefine every role, while creating reconstructing some roles; and 5% expect all finance roles will ultimately be replaced by AI.
When asked to identify the biggest threats from the burgeoning technology, 87% of research participants say the biggest threat from technology is autonomous AI systems making decisions without human intervention, while 71% point to technological vulnerabilities and the potential for AI to be hacked or manipulated.
70% are concerned about the potential for AI to be used for surveillance or control purposes; almost two thirds (64%) note the ethical implications and potential misuse of AI; and 62% identify issues with privacy and data security.However, despite concerns about the growing impact from AI, survey participants also highlight multiple positive outcomes from the technology.
When asked to rank the benefits from AI, the majority (59%) of investors say it will increase production output rates, followed by improving manufacturing flexibility and bettering product quality and consistency.
