Nicolai Tangen, CEO of Norway's colossal $1.8 trillion sovereign wealth fund, has declared that artificial intelligence adoption is non-negotiable for its employees. Tangen envisions no long-term role for staff who resist integrating AI into their workflows. This mandate underscores the fund's commitment to leveraging AI to enhance investment strategies, streamline operations, and boost overall efficiency.
The fund has already seen significant gains from AI implementation, including substantial cost savings in trading. By using AI to better predict internal buying and selling patterns, the fund aims to reduce unnecessary transactions and optimise trading efficiency. Tangen has previously stated that AI has increased productivity by 15%.
This move aligns with a broader trend of institutional investors embracing AI to improve performance and cut costs. The fund's proactive approach positions it as a leader in AI adoption within the financial sector, potentially setting a precedent for other major investment firms worldwide. The fund is aiming to cut $400 million from its $2 billion annual trading costs using AI.
