AI Human Impact: Toward a Model for Ethical Investing in AI-Intensive Companies

48 Pages Posted: 10 Aug 2020 Last revised: 21 Jan 2021

See all articles by James Brusseau

James Brusseau

Pace University - Dyson College of Arts and Sciences

Date Written: July 10, 2020

Abstract

Does AI conform to humans, or will we conform to AI? An ethical evaluation of AI-intensive companies will allow investors to knowledgeably participate in the decision. The evaluation is built from nine performance indicators that can be analyzed and scored to reflect a technology’s human-centering. The result is objective investment guidance, as well as investors empowered to act in accordance with their own values. Incorporating ethics into financial decisions is a strategy that will be recognized by participants in environmental, social, and governance investing, however, this paper argues that conventional ESG frameworks are inadequate to companies that function with AI at their core. Fully accounting for contemporary big data, predictive analytics, and machine learning requires specialized metrics customized from established AI ethics principles. With these metrics established, the larger goal is a model for humanist investing in AI-intensive companies that is intellectually robust, manageable for analysts, useful for portfolio managers, and credible for investors.

Keywords: AI, Finance, Ethical Investing, AI Ethics, ESG

JEL Classification: G00

Suggested Citation

Brusseau, James, AI Human Impact: Toward a Model for Ethical Investing in AI-Intensive Companies (July 10, 2020). Available at SSRN: https://ssrn.com/abstract=3648545 or http://dx.doi.org/10.2139/ssrn.3648545

James Brusseau (Contact Author)

Pace University - Dyson College of Arts and Sciences ( email )

1 Pace Plaza
New York, NY 10038
United States

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