August 11, 2026 | News
Stewardship Specialist
View Fund:
https://im.williamblair.com/investments/sicav-funds/lu1890060392-global-leaders-sustainability-fund
View Strategy:
https://im.williamblair.com/investments/separate-accounts/global-leaders-sustainability
Want the latest insights on the economy and other forces shaping the investment landscape?
Subscribe to our Investing Insights newsletter.
Today, AI is no longer a distant technological frontier but a defining force reshaping industries, productivity, and global competition.
As investors, we aim to be active observers in this transformation. Through capital allocation and engagement, we seek to assess and, where appropriate, encourage practices that support sustainable long-term value creation and risk management.
At its core, responsible AI is not just simply a governance or ethical consideration; we believe it is a financially material investment consideration.
AI presents companies with clear opportunities for growth and efficiency, but it also introduces a complex risk landscape that spans factors such as regulatory scrutiny, litigation exposure, reputational damage, and even operational disruption. And these risks are increasingly tied to how companies govern AI, not just how they deploy it.
Recent research underscores the gap between ambition and execution. A Fortune/Deloitte CEO survey found that only 56% of CEOs report actively cultivating a culture of ethical AI.[1] At the same time, an Infosys Knowledge Institute survey of 1,500 senior executives revealed that while 78% view responsible AI as a driver of business growth, many organizations lack the infrastructure to deploy it safely. In fact, only 2% of companies surveyed met the full standards set in Infosys’ internal responsible AI capability benchmark.[2]
For investors, this disconnect signals potential volatility: companies that fail to establish robust governance frameworks may face heightened regulatory costs, weaker customer trust, and impaired long-term earnings potential.
In addition, AI governance structures themselves are becoming a meaningful driver of differentiation. Unlike traditional technology companies, many leading AI developers are experimenting with unconventional governance models, combining nonprofit oversight, public benefit corporations, and independent trusts.
These structures, which are designed to balance commercial objectives with broader societal responsibilities, introduce new questions for investors:
These factors can directly influence revenue visibility, regulatory exposure, and even terminal value assumptions.
Importantly, governance is not only a risk mitigant, but it can also be a source of competitive advantage. We believe companies that demonstrate strong oversight, transparency, and alignment between innovation and ethics may be better positioned to earn stakeholder trust, adapt to evolving regulation, and sustain potential long-term growth.
Responsible AI governance does not eliminate business, regulatory, operational, or investment risk, and there is no assurance that engagement efforts or governance enhancements will result in improved company performance, lower volatility, or superior investment returns.
Governance is not only a risk mitigant, but it can also be a source of competitive advantage.
The policy environment around AI is developing quickly across jurisdictions. Governments are increasingly treating AI as a matter of national security, economic competitiveness, and societal stability. In the United States, for instance, regulators are taking a more active role in overseeing frontier models, increased attention on AI-related risks, including national security, cybersecurity, transparency, and accountability considerations. Internationally, the European Union’s AI Act establishes one of the most comprehensive risk-based regulatory frameworks to date, while other jurisdictions are advancing their own rules on data governance, model transparency, and high-risk use cases.
We believe this evolving landscape creates both risk and opportunity. Companies that proactively align with emerging regulatory expectations are better positioned to avoid costly compliance disruptions, while laggards may face tightening constraints, fines, or loss of market access.
To navigate the complexity of AI-related risks and opportunities, William Blair Investment Management applies a structured engagement framework that assesses how companies evaluate and manage AI.
Step One: Risk Identification
We begin by seeking to understand how AI is already influencing decisions—including informal or “shadow” use cases—and whether companies maintain a comprehensive view of AI-related risks supported by clear audit trails and explainability.
Step Two: Risk Analysis
We then focus on how companies evaluate the likelihood and impact of AI risks, test systems for bias and performance, and stress-test models before deployment, including escalation protocols for unexpected outcomes.
Step Three: Risk Mitigation
Next, we examine whether companies have real-time oversight of AI systems, clearly defined authority to pause or override deployment, and risk controls embedded throughout the product lifecycle. We also evaluate how firms are preparing their workforce for AI-driven changes and whether oversight processes are designed to operate at the pace of AI innovation.
Step Four: Governance and Accountability
Finally, we assess governance and accountability, including board-level oversight, clarity of roles and responsibilities, and alignment between AI strategies and long-term stakeholder outcomes. In particular, we focus on who has decision-making authority over high-risk AI applications and whether ethical considerations are integrated into core business strategy rather than siloed within compliance functions.
Step Five: Opportunities
In addition to risk management, we explore opportunities such as how AI can drive productivity, support environmental outcomes, and deliver shared value across employees and communities.
Companies that proactively align with emerging regulatory expectations are better positioned to avoid costly compliance disruptions.
Based on a sampling of recent company engagements, we have observed a growing recognition of the importance of responsible AI, particularly in enterprise applications where trust is essential.
Leading companies are:
Practices remain uneven, however, particularly in board-level oversight and escalation processes for high-risk AI use cases. But through our engagements, we encourage companies to strengthen these practices while maintaining room for innovation.
For example, we have urged portfolio companies in enterprise software and banking to move beyond broad responsible AI principles by improving factors such as: transparency, independent validation, evidence of governance effectiveness, and disclosures on risk identification, bias management, regulatory readiness, and human-rights impacts.
From an investment perspective, the relevance of responsible AI extends across styles and geographies. For growth-oriented companies, strong AI governance can help support premium valuations by strengthening trust, reducing regulatory uncertainty, and improving the sustainability of AI-driven business models.
For value-oriented companies, effective oversight may help protect earnings quality and limit downside risks associated with litigation, compliance failures, or operational disruptions.
And in emerging markets, where regulatory frameworks, data infrastructure, and governance practices may be less mature, AI presents both leapfrog opportunities and heightened implementation risks, making oversight especially important.
We believe responsible AI is not about slowing innovation. Rather, it is about ensuring that innovation is sustainable, scalable, and aligned with long-term value creation.
As AI continues to transform industries, we believe the companies that succeed will be those that can balance technological advancement with robust governance and transparency. Investors, however, have a critical role to play in reinforcing this balance.
So, by engaging with companies, integrating governance considerations into investment decisions, and advocating for stronger standards, we aim to support the responsible development of AI—with the objective of better understanding and, where appropriate, encouraging practices that may help address risks and opportunities that this technology presents.
Lisa Cox is a stewardship specialist at William Blair.
[1]Source: Deloitte, Fortune/Deloitte CEO Survey, Fall 2025. [2]Source: Infosys Knowledge Institute Survey, Responsible Enterprise AI in the Agentic Era, 2025.
Any investment or strategy mentioned herein may not be appropriate for every investor. There can be no assurance that investment objectives will be met. Products and services listed are available only to residents of this jurisdiction and may only be available to certain categories of investors. The information on this website does not constitute an offer for products or services, or a solicitation of an offer to any persons outside of this jurisdiction who are prohibited from receiving such information under applicable laws and regulations. Nothing on this webpage should be construed as advice and is therefore not a recommendation to buy or sell shares.
Please carefully consider the William Blair Funds’ investment objectives, risks, charges, and expenses before investing. This and other information is contained in the Funds’ prospectus and summary prospectus, which you may obtain by calling 1-800-742-7272. Read the prospectus and summary prospectus carefully before investing. Investing includes the risk of loss.
The William Blair Funds are distributed by William Blair & Company, L.L.C., member FINRA/SIPC.
The William Blair SICAV is a Luxembourg investment company with variable capital registered with the Commission de Surveillance du Secteur Financier (“CSSF”) which qualifies as an undertaking for collective investment in transferable securities (“UCITS”). The Management Company of the SICAV has appointed William Blair Investment Management, LLC as the investment manager for the fund.
Please carefully consider the investment objectives, risks, charges, and expenses of the William Blair SICAV. This and other important information is contained in the prospectus and Key Investor Information Document (KIID). Read these documents carefully before investing. The information contained on this website is not a substitute for those documents or for professional external advice.
Information and opinions expressed are those of the authors and may not reflect the opinions of other investment teams within William Blair Investment Management, LLC, or affiliates. Factual information has been taken from sources we believe to be reliable, but its accuracy, completeness or interpretation cannot be guaranteed. Information is current as of the date appearing in this material only and subject to change without notice. Statements concerning financial market trends are based on current market conditions, which will fluctuate. This material may include estimates, outlooks, projections, and other forward-looking statements. Due to a variety of factors, actual events may differ significantly from those presented.
Investing involves risks, including the possible loss of principal. Equity securities may decline in value due to both real and perceived general market, economic, and industry conditions. The securities of smaller companies may be more volatile and less liquid than securities of larger companies. Investing in foreign denominated and/or domiciled securities may involve heightened risk due to currency fluctuations, and economic and political risks. These risks may be enhanced in emerging markets and frontier markets. Investing in the bond market is subject to certain risks including market, interest rate, issuer, credit, and inflation risk. High-yield, lower-rated, securities involve greater risk than higher-rated securities. Different investment styles may shift in and out of favor depending on market conditions. Diversification does not ensure against loss.
Past performance is not indicative of future returns. References to specific companies are for illustrative purposes only and should not be construed as investment advice or a recommendation to buy or sell any security.
William Blair Investment Management, LLC is an investment adviser registered with the U.S. Securities and Exchange Commission.
Issued in the United Kingdom by William Blair International, Ltd., authorized and regulated by the Financial Conduct Authority (FCA), and is only directed at and is only made available to persons falling within articles 19, 38, 47, and 49 of the Financial Services and Markets Act of 2000 (Financial Promotion) Order 2005 (all such persons being referred to as "relevant persons").
Issued in the European Economic Area (EEA) by William Blair B.V., authorized and supervised by the Dutch Authority for the Financial Markets (AFM) under license number 14006134 and also supervised by the Dutch Central Bank (DNB), registered at the Dutch Chamber of Commerce under number 82375682 and has its statutory seat in Amsterdam, the Netherlands. This material is only intended for eligible counterparties and professional clients.
Issued in Switzerland by William Blair Investment Services (Zurich) GmbH, Talstrasse 65, 8001 Zurich, Switzerland ("WBIS"). WBIS is engaged in the offering of collective investment schemes and renders further, non-regulated services in the financial sector. WBIS is affiliated with FINOS Finanzomubdsstelle Schweiz, a recognized ombudsman office where clients may initiate mediation proceedings pursuant to articles 74 et seq. of the Swiss Financial Services Act ("FinSA"). The client advisers of WBIS are registered with regservices.ch by BX Swiss AG, a client adviser registration body authorized by the Swiss Financial Market Supervisory Authority ("FINMA"). WBIS is not supervised by FINMA or any other supervisory authority or self-regulatory organization. This material is only intended for institutional and professional clients pursuant to article 4(3) to (5) FinSA.
Issued in Australia by William Blair Investment Management, LLC (“William Blair”), which is exempt from the requirement to hold an Australian financial services license under Australia's Corporations Act 2001 (Cth). William Blair is registered as an investment advisor with the U.S. Securities and Exchange Commission (“SEC”) and regulated by the SEC under the U.S. Investment Advisers Act of 1940, which differs from Australian laws. This material is intended only for wholesale clients.
Issued in Singapore by William Blair International (Singapore) Pte. Ltd. (Registration Number 201943312R), which is regulated by the Monetary Authority of Singapore under a Capital Markets Services License to conduct fund management activities. This material is intended only for institutional investors and may not be distributed to retail investors.
Issued in Canada by William Blair Investment Management, LLC, which relies on the international adviser exemption, pursuant to section 8.26 of National Instrument 31-103 in Canada.
The content contained in this site is intended as informational or educational in nature and does not constitute investment advice or a recommendation of any investment strategy or product for a particular investor. Investment advice and recommendations can be provided only after careful consideration of an investor’s objectives, guidelines, and restrictions. Investors should consult a financial professional/financial consultant or investment adviser before making any investment decisions. Investing includes the risk of loss.
Copyright © 2026 William Blair. William Blair is a registered trademark of William Blair & Company, L.L.C. “William Blair” refers to William Blair Investment Management, LLC and affiliates.
