Australia: Guide to addressing ESG impacts in generative AI deployment | Allens

The widespread (and growing) deployment of generative AI across all sectors will have a deep and lasting impact on almost every aspect of our lives. But the opportunities afforded by GenAI won't always offset the risks to both the environment and society. 

As ESG considerations gain prominence globally and AI deployment accelerates, organisations should review their ESG governance frameworks to ensure that the challenges and risks presented by GenAI are adequately addressed. 

Our alliance partner in Australia, Allens, has developed a guide that outlines key ESG risks and impacts companies deploying AI should consider, the questions they should be asking, and what to do in response.

Key takeaways 

• Allocate responsibility for the governance of AI-related decisions and processes at organisational as well as individual levels, as outlined in Allens’ AI Governance Toolkit.
   
• Embed ESG considerations into your AI decisions and processes and vice versa: 
  • Ensure that AI impact assessments incorporate appropriate consideration of ESG matters and that AI deployment is taken into account in human rights assessments and human rights policies. 
  • Consider any risks to the rights of workers who can be exploited in the development and training of AI.
     
• Be accurate when describing how AI is used in your business, to avoid 'AI washing', and subsequent regulatory enforcement or private litigation. Ask your suppliers about their own development, training and use of AI, and include AI providers in supply chain mapping and risk assessments.

Read the guide

To learn more about the key ESG risks and impacts companies deploying AI should consider, the questions they should be asking and what to do in response see the full Guide to addressing ESG impacts in generative AI deployment (allens.com.au)