Norges Bank Investment Management has integrated large language models into the management of the world's largest sovereign wealth fund. AI tools are now used to screen the entire portfolio and identify risks before markets react.
Norway's Government Pension Fund Global – managing $2.1 trillion in assets – is the world's largest sovereign wealth fund, owning on average around 1.5 percent of every listed company globally. It is managed by Norges Bank Investment Management (NBIM) on behalf of the Norwegian people and operates under strict ethical guidelines that prohibit investments in companies linked to corruption, forced labour, and serious environmental harm.
The fund is led by CEO Nicolai Tangen (pictured).
According to the fund's 2025 Responsible Investment report, NBIM's analysts now receive daily AI-generated risk assessments for investments made the previous day. This allows portfolio managers to act immediately if new information warrants it.
"We always review the information before we make an investment or risk decision," the report states. "In multiple instances, we identified and sold these investments before the broader market reacted to the risks, avoiding potential losses."
The AI tools have proven especially useful in analysing small-cap companies in emerging markets – companies that typically receive limited attention from data vendors and financial media. The fund notes that a lack of in-depth research previously risked allowing controversies and systemic failures in risk management to go undetected.
Large language models – a type of AI trained on vast quantities of text, enabling them to rapidly read and synthesise large volumes of information – make it possible to cover companies that previously fell outside the reach of even a fund of NBIM's scale.
The fund also uses AI to screen potential initial public offerings for sustainability and governance risks, integrating ESG considerations from the earliest stages of the investment process.
"Active investing requires deep company understanding," wrote Daniel Balthasar, NBIM's co-CIO for active strategies, in the report. "When we analyze businesses, governance and sustainability are not separate considerations – they are central to assessing competitive advantage."
In 2025, the fund's portfolio managers held 3,078 meetings with companies. Governance and sustainability were discussed at 45 percent of them.
NBIM's CEO Nicolai Tangen is clear that the technological shift is structural, not temporary.
"Artificial intelligence is changing how we work as an investor," Tangen wrote in the report. "New tools help us analyze risk, assess investments, and evaluate our company engagement. It improves decision-making across our large and diverse portfolio."
The statement signals that AI is no longer a pilot project at NBIM, but an embedded part of the daily management of a fund that holds shares in more than 8,000 companies worldwide.
Sources. Norges Bank Investment Management: Responsible Investment Report 2025
