Financial advisers must prepare for a shifting investment landscape as artificial intelligence (AI) and rising energy costs reshape responsible investing, according to Aegon Asset Management head of UK responsible investment Miranda Beacham.
Speaking at Aegon's media event on Wednesday (5 March), Beacham said that while AI is driving efficiencies across industries, its environmental costs are mounting. Large-scale AI data centres require enormous amounts of energy and water, contributing to increasing power demands at a time when grids are already under strain. "AI has benefits in terms of efficiency, but its sustainability impact is complex," Beacham explained. "Power prices are expected to increase, and this could have significant consequences for businesses and investors alike." This growing reliance on AI is increasin...
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