AI set to support impact investing

Artificial Intelligence (AI) is not necessarily the first sector one associates with meeting the UN’s Sustainable Development Goals (SDGs), but this week we bring you a report that impact investors are turning to the technology to meet their responsible investment obligations.

In a week where Elon Musk’s Department of Government Efficiency (DOGE) has warned US federal employees that the government will use an AI model to determine whether their jobs are tenable, the idea that AI is supportive of goals that include promoting "sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all" may seem surprising.

However, AI is increasingly seen as pivotal in driving a variety of sustainable projects and according to the UN Deputy Secretary General, Amina Mohammed, the technology is "already optimising energy use, improving medical diagnostics, monitoring biodiversity, expanding educational opportunities – and so much more".

Phenix Capital’s Impact Report finds that rather than destroying jobs, "AI has the ability to impact many of the SDGs, most obviously Decent Work and Economic Growth (SDG8) and Industry, Innovation and Infrastructure (SDG9), making investing in AI infrastructure attractive to institutions "who see the sector as central to sustainable investment strategies".

Further, according to McKinsey’s AI for social good: Improving lives and protecting the planet, AI has a particularly high potential to make a difference in five other SDGs: Good Health and Well-Being (SDG 3), Quality Education (SDG 4), Climate Action (SDG 13), Affordable and Clean Energy (SDG 7), and Sustainable Cities and Communities (SDG 11).

Let’s just hope the technology stays in the right hands.

More infrastructure news, this time of the more conventional kind in an article from Andrew Gill, Co-Fund manager, TIME:UK Infrastructure Income, who argues that the UK’s healthcare, housing and education sectors make for a compelling long-term investment opportunity.

As Gill notes, the government is sorely in need of support from private capital if it is to meets its growth ambitions.

Gill concedes that early private public finance initiatives have been less than optimal, but he also points to more recent iterations that offer better value for money.

And not to be outdone on the AI front, Gill points out investment opportunities in the 140MW Data centre in Buckinghamshire and Tritax Big Box’s Slough development which he describes as "gems in a highly supply constrained market".

He adds: "Despite the uncertain AI news over recent weeks, this type of infrastructure is a necessity for UK competitiveness as the economy continues to digitise."

Gill Wadsworth, Editor, Institutional Asset Manager

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