Norway's Oil Fund Gets Smart Like a Box of Chocolates with AI

• Norway's $2.2 trillion oil fund is now using AI to screen investments for ethical risks.
• AI helps the fund rapidly scan public information and identify potential issues like forced labor and fraud.
• The fund has already used AI to avoid potential losses by selling investments before broader market reactions.
• The fund's ethical framework is under revision following controversy over divestments last year, particularly concerning Israeli banks.

Life is Like a Portfolio, You Never Know What You're Gonna Get

Mama always said life was like a box of chocolates, you never know what you're gonna get. Well, turns out investing is kinda the same thing, only instead of chocolates, you get stocks and bonds. And now, Norway's big ol' $2.2 trillion oil fund is using something called AI to help figure out which companies are like the good caramel ones and which are like those weird coconut ones nobody likes. This fund, it's one of the biggest investors in the world, like Bubba was with shrimp, investing in over 7,200 companies in 60 countries. That's a whole lot of companies to keep an eye on, you know. And like Lieutenant Dan always said, "Take care of your feet" – I think that means you need to watch where you step when you're investing.

Run AI, Run Finding Risks Faster Than a Ping-Pong Ball

They're using this AI thingamajig to find possible problems with their investments, like companies doing bad things to people or the environment. They figure it'll help them find these problems faster, which is good. 'Cause as Jenny always told me, "You can't go around hurting people." This AI can scan tons of info, even stuff regular people might miss. It's like having a super-smart friend who can read all the newspapers at once. And if you want to read some more news and how swift things happen, you can go to Vatican Bank Joins the Investment Game A Swiftie's Take. So just like me running fast, this AI helps them find risks faster than a ping-pong ball at a tournament. It's pretty neat, if you ask me.

Smart is as Smart Does Investing with AI

The Norway fund started using this AI in late 2024, and they say it's become super important for watching out for risks. They're even using it to check out new companies as soon as they invest in them. Within 24 hours, the AI flags companies with potential problems, like ties to forced labor or fraud. Sometimes, this info isn't even in the news yet. They always double-check the AI's work before making any decisions, of course. Like Mama always said, "Smart is as smart does" – and using AI to make sure you're not investing in bad stuff seems pretty smart to me.

Emerging Markets, Emerging Problems AI to the Rescue

This AI stuff is especially helpful in smaller countries where it's harder to find information. Like if Bubba was trying to find shrimp in a new bayou, he'd need all the help he could get. The AI can dig through local news and find things that might get missed by the big international news folks. It's like having a translator and a detective all rolled into one. So, when those emerging markets are presenting all sorts of problems, it is AI to the rescue.

Ethical Frameworks and Divestment Decisions It's Complicated

Now, sometimes, making ethical decisions ain't so easy. Last year, the fund got some heat for selling off its investments in a machinery manufacturer and some Israeli banks. Some folks thought it was a political decision, but the Norwegian government said it wasn't. They are now reviewing the ethics around the investments and divestments. Things are complex and uncertain, as the report mentions and what Lieutenant Dan would always say. So this may get a bit complicated, but it is important to remember and take to heart.

The World Will Remain Complex and Uncertain Just Keep Running

The head of the fund, Nicolai Tangen, said that the world will remain complex and uncertain. Just like when I was running across America, you never know what's gonna happen next. But he also said that doing the right thing and making money go hand in hand. So, even with all the fancy AI and complicated rules, it all comes down to trying to do what's right. And as Mama always said, "That's all I have to say about that."