Most LPs in venture capital are struggling to grasp the ESG risks associated with AI, according to VentureESG research involving 26 asset allocators managing over $1.5 trillion. Despite AI startups receiving 22% of VC funding in 2024, only 19% of investors feel knowledgeable about the ESG risks. However, 75% recognize the significant long-term investment risks presented by AI technologies. Issues like data privacy, algorithmic bias, and energy consumption from data centers are concerns. While many LPs require ESG reporting, only 30% use it to inform investment strategies. VentureESG aims to enhance ESG integration within VC practices.