Achieving Effective AI Governance
The investment manager of the £34bn Railways Pension Scheme has developed a framework and report in partnership with a sustainability consultancy. This initiative provides clear guidelines for governing artificial intelligence (AI) within investment practices.
Integrating AI governance into the overall investment strategy is essential to ensure technology is used ethically and responsibly. The report lays out key principles organizations should adopt to manage AI risks and boost transparency.
Key Principles for AI Governance
- Accountability: Define clear responsibilities for decisions made by AI systems.
- Transparency: Make AI operations understandable and explainable to stakeholders.
- Fairness: Address and reduce biases in AI algorithms to ensure fair outcomes.
- Security: Protect AI systems from attacks and safeguard data privacy.
The framework encourages regular reviews and updates of AI governance practices. This approach helps organizations stay aligned with technological advances and changing regulations.
By adopting these practices, the Railways Pension Scheme sets an example for responsible AI use in the investment sector.
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