J Safra Sarasin’s Chief Sustainability Officer, Daniel Wild, has expressed his belief that artificial intelligence (AI) and ChatGPT have the potential to bring innovation to the ESG investment space. While these technologies can enhance data analysis, such as measuring biodiversity, Wild emphasizes that they will not replace the human element in the decision-making process. Wild emphasizes the need for rules and frameworks to govern the use of AI in order to ensure fair outcomes.
In a recent Green Dream video, Wild explains that J Safra Sarasin has started using ChatGPT but still requires human review to maintain personal integrity and balance. Although AI accelerates the work process and provides easy access to information, Wild believes that it does not yet bring significant innovation. Training ChatGPT to align with their framework is also crucial as sustainability is subjective and ChatGPT begins with a neutral starting point.
When asked about the challenges and opportunities AI presents, Wild highlights the need for rules around AI usage to prevent biased outcomes. Additionally, the black box behavior of AI can pose challenges in explaining the reasoning behind sustainability conclusions to clients. Wild believes AI can be useful for difficult-to-measure aspects of ESG, such as biodiversity, as it can help identify topics of interest and combine unstructured data for further interpretation.
Looking ahead, Wild envisions AI playing a more transformative role in the ESG space over the next decade. However, he emphasizes the importance of maintaining human involvement and adherence to existing frameworks in order to achieve fair outcomes. Ultimately, rules and guidelines will be necessary to govern the use of AI in ESG investment.
As J Safra Sarasin continues to explore the potential of AI, Wild concludes the video by sharing his favorite sustainable drink or snack. As a mountain person, he enjoys drinking fresh water from a fountain after a long hike. In an urban environment, he appreciates local beer, which he considers sustainable due to its clear and natural ingredients.
In conclusion, while AI and ChatGPT hold promise for ESG investments, they are not yet capable of replacing human input. The need for rules and frameworks to ensure fairness and prevent biased outcomes is crucial. As the ESG space evolves, the role of AI is expected to grow, aiding in the measurement and interpretation of complex data. However, sustainability decisions will still require human expertise and a clear understanding of frameworks.
