Artificial intelligence (AI) poses many ethical issues that can translate into risks for consumers, companies and investors. AI regulation, which is developing unevenly across multiple jurisdictions, adds to the uncertainty. The key for investors, in AllianceBernstein's view, is to focus on transparency and explainability.

The ethical issues and risks of AI begin with the developers who create the technology. From there, they flow to the developers' clients companies that integrate AI into their businesses and on to consumers and society more broadly. Through their holdings in AI developers and companies that use AI, investors are exposed to both ends of the risk chain.

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