Artificial intelligence appears poised to disrupt industries, improve customer outcomes, and enhance lives, and solutions based on AI are projected to contribute as much as $15 trillion to the global economy in 2030—more than the current output of China and India combined. The problem-solving potential of AI is seemingly limitless, and it may well change the way we work, travel, power our cities, diagnose disease, and organize our society.
And yet there are reasons to be cautious. Information is power, and that power can be used for good or for ill. In this episode, Brown Advisory’s Katherine Kroll explores the investor case for “ethical AI” and why failing to proactively ensure AI is used to help, not harm, is a material and salient risk not only to investment performance but to our society’s ability to thrive. She speaks with three of the foremost experts on ethical AI: Aza Raskin, co-founder of the Center for Humane Technology; Arathi Sethumadhavan, Ph.D., Head of User Research for Ethics & Society at Microsoft; and Kay Firth-Butterfield, Head of AI and Machine Learning, World Economic Forum.
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Right now, as you listen to this, there are computers and network servers all over the world pondering one topic: you. They are improving your life invisibly—streamlining traffic on your commute, helping drive down your utility costs, curating playlists on your favorite streaming app, and likely improving the health care diagnoses you receive. But to do this, they watch your face, the way you walk, how fast you type; they monitor your financial habits, the color of your skin; your social media activity, and then suggest content that might amplify or contort your existing views.
This reality is the basis for one of the most powerful technological revolutions in history: artificial intelligence—or AI. AI solutions could contribute $15 trillion to the global economy in 2030—more than the current economic output of China and India combined. But AI is often positioned as a binary choice: either glorified as our only hope to mitigate impending disasters, like climate change, or vilified for corroding our social fabric. Of course, the truth is much more complex.
I’m Katherine Kroll, and I’m an Investment Specialist at Brown Advisory – where we are enthusiastic investors in AI and the opportunities it creates. . We believe it is our job to understand and allocate capital to these opportunities—AND to understand the potential downside of the risks. Applying an ethical lens to AI positions us to maximize upside while recognizing that the bottom of AI is still unknown, and that we must be diligent in our efforts to learn as much of what is known as possible. That’s why we invited three experts on the topic to discuss why getting ethical AI right matters, and what might be at stake if we get it wrong.
Aza Raskin is the co-founder of the Center for Humane Technology (you might recognize him from the documentary, The Social Dilemma); Arathi Sethumadhavan, Ph.D., is Head of User Research for Ethics & Society at Microsoft; and Kay Firth-Butterfield, is Head of AI and Machine Learning, World Economic Forum. After talking with Aza, Arathi and Kay, I sat down with two of Brown Advisory’s technology analysts to dig into the investment implications. I wanted to start by asking Aza to begin with the basics.
Head AI and Machine Learning, World Economic ForumHead of Artificial Intelligence and a Member of the Executive Committee at the World Economic Forum; one of the foremost experts in the world on the governance of artificial intelligence (AI). Barrister, former Judge and Professor, technologist and entrepreneur who has an abiding interest in how humanity can equitably benefit from new technologies, especially AI. Associate Barrister (Doughty Street Chambers), Master of the Inner Temple, London and serves on the Lord Chief Justice’s Advisory Panel on AI and Law. Co-founded AI Global and was the world’s first Chief AI Ethics officer in 2014 and created the AIEthics twitter hashtag. Vice-Chair of The IEEE Global Initiative for Ethical Considerations in Artificial Intelligence and Autonomous Systems and was part of the group that met at Asilomar to create the Asilomar AI Ethical Principles. On the Polaris Council for the Government Accountability Office (USA), the Advisory Board for UNESCO International Research Centre on AI and AI4All. Advanced degrees in Law and International Relations and regularly speaks to international audiences addressing many aspects of the beneficial and challenging technical, economic and social changes arising from the use of AI.
Co-Founder, The Center for Humane TechnologyTrained as a mathematician and dark matter physicist, Aza is also the co-founder of Earth Species Project, an open-source collaborative nonprofit dedicated to decoding animal communication. He has taken three companies from founding to acquisition, is a co-chairing member of the World Economic Forum’s Global AI Counsel, helped found Mozilla Labs, was named FastCompany’s Master of Design, and listed on Forbes and Inc Magazines 30-under-30. For Aza, the problem is especially personal: his father, Jef Raskin, created the Macintosh project at Apple with the vision that 'humane' technology should help, not harm, humans.
Arathi Sethumadhavan, Ph.D.
Head of User Reseach for Ethics & Society, MicrosoftDr. Arathi Sethumadhavan is a seasoned research leader, with 18 years of experience studying human-technology interaction. Currently, she leads a user research team for Microsoft’s Ethics and Society, that is focused on privacy and consent, fairness, inclusion, accountability, and transparency - as it relates to AI experiences. During the course of her career, she has led user research for several novel and complex applications (e.g., Microsoft's custom neural voice, facial recognition, Medtronic's Micra pacemaker). Arathi had been cited by the American Psychological Association and the Economist. She wear many hats, including research leader, strategist, author, mentor, editor, keynote speaker, and sometimes adjunct professor. She has a PhD in Experimental Psychology (specialization in human factors and ergonomics) and an undergraduate degree in Computer Science.
Investment SpecialistKatherine is a member of the equity research team serving as an investment specialist for our Large-Cap Sustainable Growth strategy. She also assists with leading the firm’s engagement efforts with companies, issuers, and municipalities to promote deeper adoption of ESG. Prior to this, Katherine was a senior institutional sustainable investing specialist working primarily to assist the building of the institutional business’s approach to sustainable investing. In 2019, Katherine was named to the SRI Conference’s list of “30 Under 30” sustainable investing professionals. She is currently an MBA candidate at the University of Texas and was previously a Chapter Leader of WISE (Women Investing for a Sustainable Economy) in Boston, MA. Prior to joining Brown Advisory, Katherine helped lead the shareholder advocacy efforts for Green Century Capital Management, engaging with fortune 500 companies and serving on two advisory boards for the United Nations-supported Principles for Responsible Investing (UN PRI).
ESG Equity Research AnalystVictoria joined Brown Advisory’s Equity Research team in 2019 focusing on ESG research and sustainable investing priorities. Victoria works broadly with the equity investment team to leverage ESG insights as a component of Brown Advisory’s bottom-up due diligence. Victoria joined Brown Advisory in 2016, serving as the firm’s Senior Equity Compensation Specialist. Prior to joining the firm, Victoria worked as a Senior Audit Accountant at SC&H Group Inc. in Sparks, Maryland.
John Canning, CFA
Equity Research AnalystJohn is a partner and equity research analyst at Brown Advisory. He focuses primarily on the software and service companies in the Technology sector.
S3 | Episode 2 | Capitalism Needs an Upgrade: A Conversation with Dan Schulman, President & CEO of PayPalOctober 28, 2021
Fortune recently ranked Dan Schulman, CEO of PayPal, near the top of its annual World’s Greatest Leaders list, and as long-term shareholders of PayPal, we agree with their assessment. We have watched Dan lead PayPal’s ongoing growth into a digital platform responsible for more than $1 trillion in payments globally last year. In addition, he has been steadfast and outspoken about the role of business in society and the need to modify capitalism.
We were thrilled to have the opportunity to speak with Dan during our latest episode of the NOW Podcast. Brown Advisory's Ken Coe spoke with Dan about how he views his employees as his number one constituency; PayPal's role in providing working capital and creating virtuous cycles in low-income neighborhoods; the future of financial technology; the need for all of us to rise above our own self-interest to drive progress for all, and more.
To wrap up the discussion, Ken brought in Jake Cusack and Efe Braimah from our frontier markets partner, CrossBoundary, to continue the conversation about opportunities in the fintech sector and making a difference.