Engagement to "Artificial Intelligence"
The shareholder engagement activities of Raiffeisen Capital Management’s fund management in relation to AI include dialogue with some of the leading companies and research firms in this field. (engagement-report)
As part of these activities, roughly 45 companies around the world were asked about their activities with AI and the related social opportunities and risks.
How are you integrating AI technologies into your business?
For cloud providers, one obvious use for AI is to integrate it into software, in order to make the applications more user friendly. Last year in particular, the media was abuzz with AI stories, but the cloud computing provider Salesforce already started investing in artificial intelligence ten years ago. With the chatbot “Einstein Copilot”, Salesforce has now created an AI-supported solution for its products. This bot offers clients individual answers to acute problems when using the software, via live chats. Consequently, clients don’t have to wait in long customer support queues, as they are supported personally by the genius physicist Albert Einstein.
Are you currently using AI technologies in your business and in which fields do you see AI as being a game changer?
The shortage of skilled workers is a never-ending story in the tech sector. The French tech and IT consulting firm Capgemini sees the biggest potential for using AI in its ability to provide support for its employees. Thanks to AI, support will become more efficient, productive, and agile. Capgemini is training its employees specifically to use AI applications for a wide range of activities, including the production of documents and source code in the IT department and an AI-supported application process to secure the best talents for the company. In its own field and with regard to the company’s operational activities, Capgemini does not see AI as a game changer, as clients’ IT solutions have to be viewed individually.
Can you tell us about your company’s AI research and development efforts and where do you see the biggest potential for market growth?
We clearly saw last year that semi-conductor manufacturers profited from the AI boom, but the production of semi-conductor testing equipment has also become more important. For Advantest, a Japanese manufacturer of semi-conductor testing equipment, AI is thus more than just a tool to improve the efficiency of internal processes: It represents an opportunity to use AI as the basis for value-enhancing expansions of business activities. To achieve this goal, the company is actively hiring AI architects, who are participating in the broadest possible range of operations at the company. Additionally, Advantest wants to use AI to better access the markets it can serve.
With due regard to SDG 10, how does AI contribute to promoting fairness and equal opportunities at your company and will AI be replacing jobs at your company?
Artificial intelligence is often viewed critically when it comes to social aspects. We have discussed these risks, as well as the opportunities, in dialogue with global enterprises.
The US technology company Dynatrace, which was originally founded in Linz, believes that AI offers the possibility to promote fairness and equal treatment, but according to the company it is only just starting to implement AI-supported systems throughout the company. One example for the integration of fairness in the sense of SDG 10 (UN Sustainable Development Goal) is the democratisation of information. Independently of their pre-existing knowledge, AI can help employees to access and also understand AI-supported insights. In terms of job security, Dynatrace does not see any risk for existing employees and instead believes that employees stand to benefit from the advantages of AI.
In general, most of the companies that Raiffeisen Capital Management spoke with see AI solutions as a support tool for existing jobs and not as a replacement.
What risk management strategies are in place to handle potential technological, operations, and cybersecurity risks in relation to AI and quantum computing?
EU guidelines are also relevant for companies which are not listed in the EU. The Israeli web design platform Wix.com is taking a close look at the regulator’s guidelines for AI. In preparation for more EU legislation, Wix.com has started to develop an AI governance programme, which is to be implemented before any regulation comes into force.
Integrated AI systems that have access to many kinds of data within a corporate group may represent an attractive target for cybercriminals. This issue is especially important for the Chinese tech giant Tencent. Tencent operates WeChat, one of the biggest messaging apps with about 1.3 billion monthly users. Tencent has committed to the “Four Principles of AI” and is strengthening its data security measures, including an AI data security management guideline, which provides for data minimisation and a prohibition on illegal data trading. For Tencent, protecting sensitive data is a top priority, and the company is restrictive in providing access authorisations and performs regular security checks. Additionally, a risk assessment framework has been developed for new AI products, which establishes clearly defined responsibilities.
Author
Mathias Zwiefelhofer, Corporate Responsibility, Raiffeisen Capital Investment GmbH