In this episode, Cambria Allen-Ratzlaff, Interim CEO of the PRI, brings together Michael Benedict Yamoah, Vice President, Stewardship Director, EOS at Federated Hermes, Chris Jurgens, Senior Director, Omidyar Network, and Oumou Ly, Non-resident Research Fellow, UC Berkeley Centre for Long-Term Cybersecurity to explore why AI is emerging as a critical sustainability issue for investors.

The first in a two-part series, this episode examines the scale and speed of AI adoption, its implications for climate, labour, security and long-term financial stability, and what it will take for investors to get ahead of a transition that is already underway.

Overview

AI is rapidly reshaping the global economy, with unprecedented levels of capital investment, adoption and market impact. While much of the focus has been on AI as an investment opportunity, this episode reframes it as a system-wide issue with implications for climate, labour, security and long-term financial stability.

The discussion highlights a growing gap between investor awareness and capability, as well as the need for stronger coordination, clearer frameworks and more robust governance to manage AI-related risks.

Detailed coverage

AI as a system-wide investment issue
AI is not confined to the tech sector, it is a whole-economy force that will impact portfolios across industries, making it relevant for all long-term investors.

The business case for responsible AI
Responsible AI practices are increasingly linked to performance, helping companies build trust, avoid costly failures and strengthen long-term returns.

Systemic risks: energy, labour and infrastructure
AI is driving rapid growth in data centres and physical infrastructure, with significant implications for energy demand, emissions, water use and local communities.

Security and regulatory risk
AI is accelerating cyber threats while also becoming a focus for regulators globally. This creates new layers of compliance, liability and geopolitical risk for investors.

The investor capability gap
While interest in AI is growing, many investors lack the expertise, frameworks and internal capacity to assess and engage on AI-related risks effectively.

From developers to deployers
Engagement is currently focused on major AI developers, but risks and opportunities are increasingly concentrated in how AI is deployed across sectors.

Governance as the central lever
Across all perspectives, governance emerges as the most critical tool, ensuring boards and management teams are equipped to navigate uncertainty, balance trade-offs and make long-term decisions.

A transition moment for investors
AI represents a new phase of technological disruption, similar to past waves like telecoms and big data, but with broader and faster-reaching consequences.

Looking ahead

Part two will focus on the practical side, what investors can do, the tools and frameworks emerging, and where collective action can drive the most impact.

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