Norway’s sovereign wealth fund, valued at $1.4 trillion and globally recognised as the world’s biggest single owner of equities, is strategically incorporating artificial intelligence (AI) into its operational framework.
Created in the 1990s to invest Norway’s oil and gas revenues abroad and handled by Norges Bank Investment Management, the fund currently holds stakes in over 9,200 companies, and has a diverse portfolio spanning equities, bonds, property, and renewable projects worldwide.
In August, the fund outlined expectations for its invested companies, emphasising transparency in AI development, training, and testing.
This approach ensures that AI integration aligns with ethical standards, mitigating potential risks and ensuring the long-term sustainability of the fund’s investments.
The company intends to deploy AI to optimise capital deployment.
The company previously stated that it would wind down its only office in China, with Singapore taking over its hub in Asia.
The Singapore office handles all operational functions for the Asian region, including China.
Norway’s vision extends beyond mere operational efficiency; it is directed at redefining benchmarks for productivity in the fund’s activities.
The CEO of the Norges Bank Investment Management, Nicolai Tangen, has stated that he aims for a substantial 10% increase in productivity within the next 12 months through the integration of AI.
Tangen’s discussions with Sam Altman, CEO of OpenAI, affirmed the fund’s approach and set an ambitious goal of a 20% increase in productivity.
This move not only signifies the fund’s commitment to technological advancement but also indicates a calculated departure from conventional sovereign wealth fund management practices.