Norway’s $2 trillion sovereign wealth fund is leveraging artificial intelligence to fortify its investment screening process, enhancing its ability to detect reputational and ethical risks. Norges Bank Investment Management (NBIM), the entity managing this colossal fund, announced it is now employing AI to analyze potential pitfalls in its vast portfolio, which spans over 7,200 companies in 60 countries and accounts for approximately 1.5% of global publicly listed stocks.
NBIM has long been a significant force in global markets and a proponent of Environmental, Social, and Governance (ESG) investing. The fund utilizes its considerable influence and voting rights to set industry standards for companies within its investment universe, focusing on their impact on people, the environment, and society.
According to the fund’s latest responsible investment report, AI is being integrated to provide portfolio managers with crucial governance and sustainability insights. This technological integration allows NBIM to significantly expand the breadth and depth of its data analysis, leading to a more rapid identification of material risks.
A spokesperson confirmed that NBIM’s ESG risk monitoring team began incorporating Anthropic’s Claude AI model into their daily operations in November 2024. This AI has since become an integral tool for monitoring ESG risks across the entire portfolio. The fund’s 2025 report detailed the deployment of large-language AI models to screen every company upon its initial entry into the equity portfolio.
“These tools enable us to swiftly review a wide array of public information that extends beyond the typical coverage provided by data vendors,” the report states. “When risks surface related to key themes, the LLM conducts in-depth investigations, furnishing contextualized summaries.”
NBIM now receives daily AI-generated risk assessments for investments made the preceding day, enabling its teams to proactively develop mitigation strategies. “Within 24 hours of our investment, AI tools flag new companies in the fund’s equity portfolio with potential connections to issues such as forced labor, corruption, or fraud,” the report detailed. “Often, this information has not been captured in international media coverage or by data vendor alerts. We consistently review the information before making an investment or risk decision. In numerous instances, we identified and divested from these investments before the broader market reacted to the risks, thereby avoiding potential losses.”
The fund highlighted the particular value of AI in researching smaller companies in emerging markets, where news about firms may be confined to local media outlets and local languages.
“Artificial intelligence is fundamentally reshaping how we operate as investors,” stated NBIM CEO Nicolai Tangen in the report. He emphasized that sustainability and governance are “inseparable from financial performance,” acknowledging that “the world will remain complex and uncertain.”
The fund’s total value stands at approximately $2.2 trillion. In 2025, it reported an annual profit of 2.36 trillion Norwegian kroner, equivalent to about $246.9 billion. NBIM’s investment strategy shows a strong concentration in U.S. equities, representing nearly 40% of its holdings. Its most significant stakes include 1.3% in Nvidia, 1.2% in Apple, and 1.3% in Microsoft. Beyond equities, NBIM also diversifies into fixed income, real estate, and renewable energy infrastructure.
However, NBIM’s ethical considerations faced scrutiny last year, notably drawing criticism from the White House. In September, the U.S. State Department expressed its deep concern over NBIM’s decision to divest from American machinery manufacturer Caterpillar and five Israeli banks, citing “unacceptable risk” that these companies were contributing to rights violations in Palestinian territories. A spokesperson for the fund commented that the Caterpillar divestment “appears to be based on illegitimate claims against Caterpillar and the Israeli government.”
Norway’s Finance Minister, Jens Stoltenberg, responded by clarifying that the divestment was “not a political decision.” Historically, the Executive Board of Norges Bank was responsible for deciding whether companies should be excluded from the fund’s investment portfolio or placed on an observation list, based on recommendations from the Council on Ethics, an independent body appointed by the Ministry of Finance.
Following the controversy surrounding some of its divestments, temporary guidelines have been implemented, with a government-appointed committee set to present a review of NBIM’s ethical framework later this year. Under these interim rules, Norges Bank can no longer unilaterally decide on company exclusions or observations. However, it retains the authority to reverse previous exclusion or observation decisions. Concurrently, the Council on Ethics has had its power to recommend observation or exclusion suspended until the ethical framework review is finalized.
“The conflict in Gaza and the discussions surrounding the fund’s ethical framework and investments in Israel, as evident in 2025, underscored the practical complexities and challenges involved,” Tangen noted in the report. “While the fund’s ethical framework is undergoing revision, we are continuing our responsible investment efforts, reinforcing the connection between ownership and investment decisions, and maintaining our focus on financially material aspects.”
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