Venture Capital Neglects Human Rights in Generative AI Investments
Leading venture capital (VC) firms investing in generative artificial intelligence (Generative AI) are failing in their duty to uphold human rights, according to a joint report by Amnesty International USA (AIUSA) and the Business & Human Rights Resource Centre.
Despite the transformative potential of Generative AI across various sectors, including economies and societies, VC firms are not implementing essential human rights due diligence processes as mandated by the UN Guiding Principles on Business and Human Rights (UNGPs).
Michael Kleinman, Director of AIUSA’s Silicon Valley Initiative, emphasized, “Generative AI stands to revolutionize our daily lives, yet it also poses significant risks that could undermine human rights if left unchecked. It is crucial that venture capital firms investing in this field ensure responsible, rights-respecting deployment of funds.”
The European Union's recent AI Act, which mandates fundamental rights impact assessments for high-risk AI systems, underscores the need for rigorous oversight. This legal framework obligates companies to assess potential harms to health, safety, fundamental rights, and democracy. Despite this, VC firms have been slow to adopt similar measures.
Meredith Veit, Tech & Human Rights Researcher at the Business & Human Rights Resource Centre, commented, “While the EU AI Act marks progress in regulating AI deployment, it is imperative that VC firms and startups uphold human rights principles in their practices. This includes conducting thorough human rights due diligence and accountability mechanisms.”
Findings
Amnesty International USA and the Business & Human Rights Resource Centre surveyed the 10 largest VC firms and two leading startup accelerators heavily investing in Generative AI:
Only three of the 12 firms publicly commit to considering responsible technology in their investments.
Just one firm explicitly states a commitment to human rights.
Only one firm conducts due diligence for human rights issues when investing.
Merely one firm supports its portfolio companies on responsible technology issues.
The report calls on VC firms to adhere to the UN Guiding Principles, advocating proactive steps to identify and mitigate potential human rights impacts associated with Generative AI technologies.
Kleinman reiterated, “While Generative AI holds promise, its unchecked deployment could lead to significant harm, including social stigmatisation and economic instability. VC firms must act urgently to ensure responsible deployment.”
Veit concluded, “It’s not too late to steer Generative AI towards a human-centric approach that prioritizes ethical considerations over profit. Stakeholders across sectors must collaborate to shape a future where AI benefits society without compromising human rights.”