Norway wealth fund chief warns against AI driven job cuts

Tuesday 28 April 2026 - 15:21

By: Dakir Madiha

Norway wealth fund chief warns against AI driven job cuts

Nicolai Tangen, chief executive of Norges Bank Investment Management, warned companies against using artificial intelligence primarily as a tool for workforce reductions, arguing that aggressive job cuts could trigger public backlash and damage broader confidence in the technology.

Speaking ahead of the fund’s annual investor conference in Oslo, Tangen said artificial intelligence is helping offset inflationary pressure linked to rising global energy costs caused by conflict in the Middle East. He noted that despite higher fuel and commodity prices, the deflationary impact of AI driven productivity gains is limiting broader price increases across parts of the economy.

Tangen urged business leaders to approach AI as a mechanism for inclusion and productivity rather than simply as a cost cutting instrument. His comments come as major corporations increasingly link layoffs to advances in automation and AI systems. Large American banks including JPMorgan Chase, Citigroup, Goldman Sachs, and Morgan Stanley collectively eliminated thousands of positions while reporting stronger profits. Technology companies have also accelerated restructuring tied to AI capabilities.

Public unease around artificial intelligence is growing. Recent research indicates that more than half of surveyed respondents report anxiety about AI products, while frustration among workers affected by automation continues to rise. The debate is increasingly shifting from technological potential to social and labor consequences.

Tangen pointed to his own organization as an example of a different approach. Norges Bank Investment Management, which oversees around $2.2 trillion in assets, reported productivity gains of roughly 20 percent through AI integration without reducing staff. The fund has incorporated AI systems into its environmental, social, and governance risk analysis, using models from Anthropic to identify ethical and reputational risks across thousands of investments.

The AI systems generate daily risk assessments for portfolio additions and flag potential concerns involving corruption, fraud, or forced labor for human review. Tangen stressed that despite increased automation, humans remain responsible for all investment decisions, with AI serving as an analytical support tool rather than a replacement for judgment.

The investor conference in Oslo gathered prominent global executives and financial leaders, including representatives from hedge funds, banking, aviation, and international development institutions. Discussions focused on leadership, corporate culture, and the economic impact of artificial intelligence in a period marked by geopolitical instability and volatile energy markets.

Tangen also highlighted the complexity facing investors as AI driven productivity gains interact with inflationary pressure from energy shocks. He warned that balancing these opposing forces is making asset selection increasingly difficult even for the world’s largest sovereign investor.