AI and financial markets: is governance becoming a key criterion?
Artificial intelligence continues to reshape financial markets. Until now, investors have primarily focused on growth, profitability and computing capacity. But another factor could gradually gain importance: the ability of companies to demonstrate that their AI systems are governable, auditable and secure.
In an interview with The Block Republic, Kevin Berton, Fund Manager and Analyst specialising in Asian markets at Piguet Galland, explores how AI governance could increasingly influence the way investors assess companies exposed to the technology.
From growth to a ‘trust premium’
According to Kevin Berton, companies able to demonstrate robust AI governance and security could gradually benefit from a ‘trust premium’. Conversely, repeated incidents or insufficiently controllable systems could lead to greater regulatory scrutiny and put valuations under pressure.
At the same time, the way AI is financed is changing. As the sector increasingly turns to debt markets, investors are paying closer attention to balance-sheet strength, cash-flow generation and the ability of AI investments to deliver sustainable returns.
A new investment theme?
The rise of AI agents is also creating growing needs for verification, auditing and security. While there is not yet a dedicated stock-market segment for AI governance, cybersecurity companies are already developing solutions in this area.
Could AI governance become a new driver of value creation for investors?
