Venture capital firms are funneling funds into Generative AI companies at an unprecedented rate, but a recent report indicates a disturbing trend – the negligent regard for human rights. Amnesty International USA (AIUSA) and the Business & Human Rights Resource Centre have cautioned that leading VC firms are falling short in their responsibility to uphold human rights, especially concerning the surge of Generative AI technologies.
Amidst the excitement of the potential of Generative AI to revolutionize various aspects of our lives, concerns about the potential risks it poses to human rights cannot be overlooked. Michael Kleinman, Director of AIUSA’s Silicon Valley Initiative, emphasized, “Generative AI is poised to become a transformative technology that could potentially touch everything in our lives. While this emerging technology presents new opportunities, it also poses incredible risks, which, if left unchecked, could undermine our human rights.”
The research unveiled a glaring lack of basic human rights due diligence processes implemented by leading VC firms to ensure that the companies and technologies they invest in respect human rights, as mandated by the UN Guiding Principles on Business and Human Rights (UNGPs). This oversight is particularly worrisome given the potentially transformative impacts Generative AI technologies could exert on our economies, politics, and societies.
As the EU recently reached a political agreement on the AI Act, which is considered the most comprehensive AI legislation to date, venture capital firms face mounting pressure to reevaluate their approach. The law paves the way for legal oversight of AI technology and necessitates mandatory fundamental rights impact assessments for high-risk AI systems across various sectors. Additionally, it grants citizens the right to challenge AI-powered decisions.
Meredith Veit, a Tech & Human Rights Researcher at the Business & Human Rights Resource Centre, underscored the importance of a human rights-based approach within the new EU AI Act. She emphasized the need for salient human rights considerations and material risk assessments to inform investment decisions, particularly pertaining to the deployment of potentially harmful AI systems.
A survey of leading VC firms and start-up accelerators in the US revealed alarming findings. Despite the far-reaching implications of their investments in Generative AI start-ups, the majority of these entities are neglecting their responsibility to respect human rights. Only a few firms have public commitments to responsible technology, explicit commitments to human rights, or conduct due diligence for human rights-related issues when deciding to invest in companies.
The report advocates for adherence to the UN Guiding Principles on Business and Human Rights, which stipulate proactive and ongoing steps to identify and respond to the potential or actual human rights impacts of Generative AI. This includes undertaking human rights due diligence to identify, prevent, mitigate, and account for human rights impacts.
Kleinman reiterated the critical importance of proactive measures to address Generative AI’s potential human rights impacts. He emphasized the myriad of risks associated with Generative AI, especially in high-risk contexts such as conflict zones and vulnerable communities, highlighting the urgent responsibility of venture capital firms.
Veit also highlighted the potential of new technologies when designed with a human-centric approach and urged stakeholders to regain control over how Generative AI is designed, developed, and deployed. She stressed the imperative of not allowing Generative AI to make decisions that could encroach upon human rights.
In the rush to capitalize on the promise of Generative AI, the necessity of upholding human rights cannot be sidelined. As venture capital firms continue to drive investments into this burgeoning sector, the imperative to balance innovation with human rights safeguards becomes increasingly pronounced.
