Responsible Investing in AI: A Guidebook for VCs
White paper
Hi AI ethics enthusiasts,
I'm thrilled to share with you my latest work: "Responsible Investing in AI: A Guidebook for VCs"!
It is free to anyone to use. Access it here:
This guidebook provides a structured approach to evaluating AI companies, ensuring that your investments not only yield financial returns but also contribute to the responsible development of AI. It is the culmination of a year-long collaboration with VentureESG, aimed at helping investors navigate the complex landscape of AI and data-heavy companies.
In this newsletter, I'll walk you through the key components of the guidebook. Whether you're a seasoned VC or just getting started in the field, this guide offers valuable insights to help you make informed decisions and support responsible AI development.
For dessert, an AI-generated take on this post!
The Five-Step Workflow
At the heart of the guidebook is a five-step workflow designed to help investors assess AI companies thoroughly:
Decide whether the company poses AI risks: Identify if the company develops AI, uses AI, or processes massive amounts of data.
Evaluate the risk of conflict with regulation and with your values: Assess potential regulatory challenges and alignment with your ethical standards.
Evaluate the company's responsible AI maturity: Examine the company's knowledge, workflows, and oversight related to AI ethics.
Decide whether the company is eligible for investment: Based on the previous steps, determine if the company meets your investment criteria.
If you invest in the company, prepare to support it on data and AI ethics issues: Develop a plan to help the company improve its responsible AI practices.
What's Inside the Guidebook
The guidebook is packed with valuable information and practical tools:
AI and AI Ethics Primer: A concise introduction to key concepts and terminology.
AI Ethics and Materiality: Explore how responsible AI practices can impact a company's financial performance.
Responsible AI Due Diligence: Detailed guidance on conducting thorough assessments of AI companies.
Case Studies: Real-world examples to illustrate the application of the workflow.
Supporting Portfolio Companies: Strategies for helping your investments improve their responsible AI practices.
Flowchart: A graphic workflow to guide you through the process
Get Your Copy
The full guidebook and flowchart are free for anyone to use. Dive it and share with your collogues!
Acknowledgments
This project was graciously supported by the Notre Dame-IBM Tech Ethics Lab. I want to extend my heartfelt thanks to Johannes Lenhard, who worked closely with me on this project, and the entire VentureESG community for their invaluable insights. A special shout-out goes to Ilan Finkelstein, the talented graphic designer behind the flowchart that brings our workflow to life.
Ready for More?
Check out our comprehensive resources, workshops, and consulting services at www.techbetter.ai, and follow us on LinkedIn: Ravit's page, TechBetter's page.