World's biggest sovereign wealth fund uses Anthropic's Claude to screen investments

Norway's sovereign wealth fund, with assets totaling $2 trillion, has announced a significant shift in its investment approach by incorporating artificial intelligence to assess potential reputational and ethical risks. Managed by Norges Bank Investment Management (NBIM), this fund has been pivotal in global markets since its inception in the 1990s, leveraging profits from the country’s oil and gas sector. With investments in over 7,200 companies spanning 60 nations, the fund holds about 1.5% of the world's publicly traded stocks. NBIM has long been a key player in promoting Environmental, Social, and Governance (ESG) initiatives, using its considerable influence and voting rights to advocate for corporate accountability regarding societal and environmental impacts. In its latest responsible investment report, the fund revealed that it has integrated AI technology to provide insights into governance and sustainability for portfolio managers. This advanced technology allows for a broader and more in-depth analysis of potential risks, enabling quicker identification of material threats. A spokesperson from NBIM noted that the ESG risk monitoring team started utilizing Anthropic's Claude AI model in daily operations in November 2024. Since its implementation, this AI tool has been vital in monitoring ESG risks across the fund's diverse investments. The report outlined that, starting in 2025, large-language AI models would be employed to screen all newly added companies to the equity portfolio. These AI capabilities assist in efficiently scanning extensive public information, often surpassing the coverage provided by traditional data vendors. When risks related to specific themes arise, the AI conducts more thorough investigations, delivering contextual summaries. Daily AI-generated risk evaluations are provided for investments made the previous day, allowing NBIM to proactively consider risk mitigation strategies. Within a short timeframe of 24 hours, the AI flags new companies in the fund’s portfolio that may be linked to issues such as forced labor or corruption, often uncovering risks that mainstream media may overlook. Each flagged case is meticulously reviewed before any investment or risk decisions are finalized. NBIM emphasized that this AI-driven approach has been particularly advantageous for evaluating smaller companies in emerging markets, where news coverage may be limited. CEO Nicolai Tangen stated that AI is reshaping investment practices, asserting that sustainability and governance are integral to financial success. He acknowledged the complexities and uncertainties that investors face in today's world. As of now, the fund's value stands at approximately $2.2 trillion, with a reported profit of 2.36 trillion kronor (around $246.9 billion) for the year 2025. Notably, nearly 40% of the fund's investments are concentrated in U.S. equities, with significant stakes in leading companies like Nvidia, Apple, and Microsoft. However, the fund has faced scrutiny for some of its ethical decisions. Last year, criticism arose after NBIM divested from U.S. machinery manufacturer Caterpillar and several Israeli banks, actions which the U.S. State Department deemed problematic due to alleged human rights violations in Palestinian territories. Norway’s finance minister clarified that the divestment was not politically motivated. In light of these controversies, temporary guidelines have been established regarding the exclusion of companies from the fund’s portfolio. A government-appointed committee is expected to present a review of NBIM's ethical framework later this year. The recent conflict in Gaza has highlighted the challenges faced in balancing ethical investment practices with financial responsibilities, as noted by Tangen in the report. Despite the ongoing review, NBIM remains committed to responsible investment practices that align ownership with financial decisions.