Activist investors are launching campaigns demanding companies accelerate or alter their use of artificial intelligence, a trend experts say is a fundamental break from traditional activism that typically responds to poor performance or specific failures.
Activists are “increasingly asking whether a company is an AI winner, an AI loser, or simply moving too slowly, and then using the answer to argue for changes in strategy costs, capital allocation, or the portfolio,” said Leonard Wood, chair of law firm Goodwin Procter’s shareholder activism and takeover defense practice.
The trend has major implications for public companies inside and outside the AI value chain, with activists now scrutinizing boards’ AI oversight and execution capabilities.
Register on the Pensions & Investments website to access the complimentary article for ASFA members. Read it here.