AI investing $Billions—but who’s watching the watchers?

CalPERS and other major institutional investors are increasing oversight of how artificial intelligence is governed at the companies they fund. The California Public Employees’ Retirement System (CalPERS), one of the largest pension funds in the United States, is joining a growing group of institutional investors demanding clearer rules for AI use. These investors want to know how companies manage risks such as bias, data privacy, and automation’s impact on jobs. They are also pushing for board-level accountability. The move signals that AI governance is shifting from a technical issue to a core concern for shareholders managing long-term money.