top of page
Search

Responsible AI for the Future

  • Blue Summit
  • 5 minutes ago
  • 2 min read
ree

It’s important for you to know how your investments support shaping a more responsible future for AI. Artificial Intelligence (AI) is rapidly changing how businesses operate, but without proper guardrails, it can also create risks — from privacy concerns to biased outcomes.

 

Our fund mangers have made responsible AI a stewardship priority, encouraging companies to build systems that are well-governed, protective of human rights, and environmentally forward.

 

Why Responsible AI Matters

 

AI has shifted from a theoretical ESG topic to a critical business imperative. Companies now face real financial and reputational risks if AI systems are deployed without proper oversight.


Parnassus’ Responsible AI Framework 2025 outlines clear expectations:

 

  • Strong governance and board oversight

  • Human-rights-based risk assessments

  • Privacy, fairness, and safety built into design

  • Transparency about how AI is used

 

Social Responsibility - NVIDIA

 

NVIDIA powers many of today’s AI systems. Parnassus engaged the company to strengthen oversight of how its technology is used. This led to:

 

  • Publication of a human-rights policy

  • Commitment to a third-party human-rights assessment

  • Formation of an executive-level ESG steering committee to oversee AI risks

 

These steps help ensure NVIDIA’s AI technology is developed and deployed responsibly.

 

Social Responsibility - Workday

 

Workday integrates AI into HR and workforce tools, which can influence hiring and employee development. In response to Parnassus’ engagement, Workday:

 

  • Enhanced responsible-AI governance and board oversight

  • Completed an independent assessment using the NIST (National Institute of Science and Technology) AI Risk Framework

  • Achieved ISO 42001 accreditation, an international AI governance standard

 

Environmental

 

It’s important we include some environmental areas of AI that are being worked on by Parnassus and other fund managers.  As AI grows rapidly, companies are being urged to reduce the energy and water demands behind it.

 

  • Boost cooling efficiency & cut water use by adopting advanced cooling systems and shifting data centers toward recycled or non-potable water.

  • Increase clean-energy sourcing to power AI infrastructure through renewable-energy contracts and 24/7 carbon-free energy efforts.

  • Use AI to advance resource efficiency in buildings, manufacturing, and grid systems so the technology helps reduce waste instead of driving more of it.

 

Together, these initiatives help ensure AI’s growth supports—not strains—the transition to a more sustainable economy.  Companies across our portfolios are adopting stronger AI governance and reducing risks.  Your investments help promote ethics and sustainability in the coming stages of AI.


We hope you find this article interesting and insightful.  As always, feel free to pass these articles on to others or share your comments with us!


Know someone who could be helped by working with a professional financial advisor?


Blue Summit does not directly engage with companies listed above.  Many, but not all clients, are invested in Parnassus Funds. 

 
 
 

Comments

bottom of page