Is there any question which road we are currently barreling down? And can there be any doubt which we would do well to walk together?
We are both Catholics, members of religious communities and longtime advocates within the movement for socially responsible investment. Of particular interest to us and that movement is Pope Leo’s point that AI is not some force of nature or hyperrational, ineffable entity. Instead, he reminds us, AI is ultimately another commercial product, one emerging at a point in history when excessive power over commerce and the wider society has amassed in a vanishingly small number of hands.
It’s a powerful message. It’s also one that institutional investors have been acting on for years. This encyclical doesn’t break new ground so much as ratify a governance effort that’s already underway, led not by states or international bodies but by shareholders. When governments fail to meaningfully regulate, and corporations cannot be trusted to do what is beneficial beyond their own bottom line, people in society still have the power to set us on the right path, and indeed have the duty to do so.
Around the world, AI systems are being deployed at scale with remarkably little institutional oversight. There is no AI safety board. The US Federal Trade Commission has jurisdiction over unfair practices but limited authority over algorithmic design. The National Institute of Standards and Technology publishes guidance that most companies ignore. The EU AI Act is partially in force but addresses only a sliver of the deployment surface.
Institutional investors have stepped into this vacuum. Coalitions including the membership of the Interfaith Center on Corporate Responsibility, representing investors managing over $400 billion in assets, have spent the past several proxy seasons filing resolutions demanding transparency, risk assessment, and accountability around AI deployment. Secular institutional investors have joined them, treating AI governance failures as material business risks.
Shareholders have called tech giants including Alphabet, Amazon, Nvidia, Palantir, and Uber to account and demanded that AI not be used for acts of violence or other violations of human rights. The importance of this aspect of corporate governance was highlighted tragically in the opening hours of the war against Iran, when AI was used to help identify targets for thousands of missile strikes that killed hundreds of people.
Investors have also challenged executives at CVS and UnitedHealth Group to ensure that AI not be used to undermine the well-being of patients and quality of health care across the United States.
At companies including Meta and Microsoft, shareholders have decried the environmental impact of AI data centers, which consume vast amounts of energy and precious water resources, and in turn can emit large amounts of greenhouse gases.