AI Climate Risk Analyst

While AI may not yet surpass human intelligence, it excels at reading, understanding, and summarizing information at unparalleled speeds. This makes it exceptionally suitable for tasks involving data aggregation, which is a significant part of analyst work.

One often overlooked aspect of this work is climate risk analysis. In today's landscape, every major fund must assess the risks within their portfolios. They consider not only company-specific risks but also regulations that could affect their market positions and natural catastrophes that might impact their investments.

For example, droughts in India can lead to increased import dependency, potentially altering which supermarkets thrive or which local players in the food industry succeed. Similarly, elevated flood levels in Vietnam's Mekong Delta can negatively affect pangasius production.

These are niche topics requiring extensive reading and understanding of local news and research papers. Naturally, most finance professionals lack the time for such in-depth analysis and often hire consulting firms. However, not every deal reaches a stage where it's feasible to engage consultants immediately. Therefore, having a comprehensive market overview—especially concerning climate risks—is immensely valuable.

Furthermore, AI is on a trajectory to perform the sophisticated analyses that consultants currently provide. While this capability isn't fully realized today, the brightest engineers are diligently working toward it.

At AnalystAI, we develop climate risk analysis tools for large pension funds looking to evaluate their exposure to risks in specific countries. Traditionally, this research is conducted from places like New York and London, but with AnalystAI, we incorporate insights from local news sources as well.

Additionally, we track news and data to determine if these risks are becoming more or less likely. When investors focus on specific companies, we also review the company's financial documents, investor presentations, and annual reports to identify actions taken.

All of this work, which could previously take days, is now accomplished within minutes.

You can see a demo of our Climate Risk Analyst here: https://youtu.be/AMPBgrqLjOA