Norwegian Wealth Funds Use Artificial Intelligence In Investment Management

CEO of the Norwegian Wealth Fund, Nicolai Tangen (photo: twitter @enur72)

A CEO of Norwegian Wealth Funds, Nicolai Tangen, which manages funds of US$1.4 trillion (Rp21.8 quadrillion) revealed that the funds were managed using artificial intelligence (AI). This was done to help manage its investment, as posted in an interview at the Reuters NEXT Conference in New York.

The fund invests Norwegian state revenue from domestic oil and gas production in stocks, bonds, property, and renewable energy projects.

These funds are the largest state wealth fund in the world, with share ownership in more than 9,200 companies worldwide and own 1.5% of all listed shares.

"We are now using AI in the way we allocate capital," Tangen said, quoted by VOI from Reuters. "We use it to reduce our trade, because we are funds that follow the index, and sometimes we have to make adjustments in the portfolio, and these kinds of models can help us trade less."

Tangen said that he had set an internal target for the fund to increase productivity by 10% in the next 12 months by using AI, and had recently discussed it with Sam Altman, CEO of the intelligence company made by OpenAI.

"I asked Altman: 'I think we can increase our productivity by 10% in the next 12 months... what do you think?'" Tangen said, adding that he had taken the 10% mark "from the top of the wind".

He said that Altman told him: "I think you can reach 20%."

The funds also encourage 9,200 companies where they invest in interacting with AI, but remain responsible, by announcing a series of expectations regarding the issue in August.