AWS and Clarity AI to use generative AI to boost sustainable investments

Announced at AWS re:Invent, the initiative aims to empower investors make greener investment decisions

Cloud computing experts, builders, customers, partners, and technology enthusiasts descend on Las Vegas to attend AWS re:Invent event that runs through December 1. Photo: AWS

Amazon Web Services, the world's biggest cloud services provider, has expanded its partnership with technology platform Clarity AI to help investors and consumers advance sustainable investments and purchase decisions by harnessing generative artificial intelligence and big data applications.

New York-based Clarity AI's platform analyses millions of data points to help investors track, measure, and optimise the social and sustainability impact of their investment portfolios and comply with regulatory reporting.

Using AWS cloud capabilities, it aims to offer transparent information on more than 70,000 companies, 420,000 funds and 400 local governments.

“AWS provides the cloud services, flexibility and scale we need to be a data-driven company, to unlock the power of AI, and to deliver critical sustainability insights to investors, consumers, and organisations making key decisions that impact our planet,” Angel Agudo, board director and senior vice president of product at Clarity AI, said at the AWS re:Invent conference at Las Vegas on Monday.

Currently, a number of e-commerce firms are using Clarity AI's environmental analysis across electronics, fashion, groceries, household brands, and health and beauty sectors. This analysis assists in visually pinpointing sustainable brands for consumers.

It integrates into existing e-commerce setups, displaying badges that acknowledge a brand's sustainability efforts. This empowers eco-conscious shoppers to support and incentivise sustainable practices through their purchases.

The insights help 150 million shoppers to purchase from sustainable brands and help investors direct more than $30 trillion in funds towards companies that produce positive environmental impacts, according to the company.

“Our ambition is that social and environmental impact is seen by investors and businesses as a key variable beyond purely financial values,” Mr Agudo said.

Using AWS solutions, Clarity AI has trained up to seven billion large language models and natural language processing models. These models detect, manage and classify millions of unstructured data points from sustainability reports, financial reports, earnings calls and research documents.

Investors and consumers make critical investment and buying choices relying on reporting frameworks, such as environmental, social and governance (ESG) reports. These reports unveil details about an organisation's environmental influence.

Investors utilise this data to monitor a company's environmental and societal contributions.

However, validating ESG performance data poses challenges due to the absence of standardised reporting norms, constantly changing regulations and scattered data sources.

“Generative AI has the potential to transform every application, business and industry,” said Matt Garman, senior vice president of sales, marketing and global services at AWS.

“Clarity AI is a great example of how this technology can deliver important benefits for business, society, and the planet, helping the world make more sustainable investments and purchase decisions.”

Clarity AI's sustainability insights reach more than 150 million consumers across more than 400,000 merchants, the company says.

Founded in 2017, the company has offices in North America, Europe, and the Middle East, and its clients include companies like Invesco, Nordea, BlackRock, Santander, Wellington and BNP Paribas.