Updated

Updated · CNBC · Apr 28

Nicolai Tangen says global markets favor index funds as NBIM boosts productivity with AI

Updated

Updated · CNBC · Apr 28

Nicolai Tangen says global markets favor index funds as NBIM boosts productivity with AI

Q: As AI boosts fund productivity, what prevents it from making autonomous decisions during a fast-moving crisis?

What stops AI from acting on its own in a market shock is not a lack of usefulness, but a lack of permission, accountability and trust. Tangen said NBIM uses AI heavily and has gained about 20% productivity, but “a human in the loop” remains in place and AI does not make investment decisions autonomously. That reflects how a $2.2 trillion sovereign fund is run. NBIM follows a strict mandate from Norway’s finance ministry and operates as a near-index fund, so its role is to stay broadly invested rather than let a model make discretionary bets in a crisis. In a fast-moving event such as the U.S.-Iran war and the Strait of Hormuz disruption, the problem is not just speed but judgment: data can be incomplete, distorted or rapidly changing, and AI systems can misread novel situations, produce confident errors or miss geopolitical nuance. There is also a governance issue. High-stakes trades require a clear chain of responsibility, auditability and compliance. Regulators and industry risk frameworks increasingly expect human oversight for consequential financial decisions because someone must be able to explain, approve or stop an action. That is especially important when errors could be costly and hard to reverse. So AI at NBIM is being used as an accelerator for analysis, trading efficiency and internal processes, not as an unsupervised decision-maker. In a crisis, human judgment remains the control point.

3 articles · Updated · CNBC · Apr 28

Speaking at NBIM's annual conference in Norway, CEO Tangen reported a 20% productivity rise from AI integration and highlighted the fund's $2.2 trillion size.
Tangen noted ongoing market uncertainty from the U.S.-Iran war and oil supply constraints, emphasizing NBIM's diversified, index-near investment approach and increased inflows from Norway's rising energy exports.
NBIM, managing stakes in 7,200 companies across 60 countries, uses AI to reduce trading costs but retains human oversight in investment decisions, reflecting cautious optimism amid geopolitical and macroeconomic volatility.

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Center100%

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Is Norway's passive investment strategy a safe haven or a missed opportunity during this global supply shock?

As AI boosts fund productivity, what prevents it from making autonomous decisions during a fast-moving crisis?

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Beyond oil, which supply chain disruption from the Hormuz closure will impact the world most severely?

Can China's diplomatic efforts with Iran succeed in reopening the vital Strait of Hormuz?

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12 total

Center100%

CNBC89d ago

NBIM CEO Nicolai Tangen: Markets Favor Index Funds Amid Geopolitical Uncertainty; AI Boosts Productivity 20%

CNBC89d ago

'Productivity gains will be huge' from AI, says Nicolai Tangen

Chief Investment Officer89d ago

NBIM Appoints Nicolai Tangen to 2nd Term as CEO | Chief Investment Officer

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Nicolai Tangen says global markets favor index funds as NBIM boosts productivity with AI

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