Note: I wrote this post to explore various theses and theories of change for a potential HBCUvc fund. This post was edited with the assistance of ChatGPT.

Generative AI and Climate are two of the fastest-growing industries in the U.S. today, positioned to shape our collective future in unprecedented ways. As the founder of a nonprofit focused both on racial justice and venture capital, I see the opportunities for innovation and progress these sectors promise. However, if we fail to address existing disparities, these industries risk deepening inequities, particularly for Black communities. To build a future that truly benefits everyone, we must actively shape the growth of these sectors and ensure that Black Americans are not excluded from the economic and social gains they offer.

Generative AI: Generating Wealth, But for Who?

The Generative AI economy is projected to create $2 trillion in wealth annually in the U.S., yet this economic boom is not translating into equitable opportunities for Black Americans. Instead, AI threatens to widen the racial wealth gap by $43 billion annually over the next 20 years. Several key factors drive this inequality:

1. New Wealth, Limited Participation: The wealth being generated in the AI economy largely bypasses Black communities. Black individuals are underrepresented in the tech and AI sectors, which are forecasted to dominate the future of work and wealth creation.

2. Automation Threatens Jobs: While Black individuals are underrepresented in tech, they are increasingly overrepresented in four of the top five occupations most at risk of automation, such as administrative, retail, and service roles. Without access to career advancement and opportunities for growth in emerging industries, these individuals face the threat of further marginalization as automation advances.

3. AI Bias in Decision-Making: AI systems, often trained on biased data, have the potential to perpetuate and even worsen racial inequities. In areas like financial services and venture capital, algorithms can result in discriminatory outcomes, making it harder for Black individuals to access loans, credit, and investment—tools critical for wealth building.

Climate Change: Disproportionate Impacts on Black Communities

Climate change, another urgent crisis, disproportionately affects Black communities, worsening both health and economic disparities. Half of all Black Americans live in the southeastern U.S., a region most vulnerable to weather events like hurricanes and flooding. Climate change deepens the inequities that have long plagued these communities:

1. Environmental Disasters: Many Black neighborhoods, particularly those with a history of redlining, are located in areas most susceptible to environmental disasters. Cities like Baltimore and New Orleans are prime examples of how systemic racism has concentrated Black communities in high-risk flood zones, where they face heightened vulnerability to hurricanes and rising sea levels.

2. Health Impacts: The health consequences of climate change are especially severe for Black communities, who already face significant barriers to healthcare access. Rising temperatures exacerbate heat-related illnesses in urban areas that lack green spaces. Poor air quality increases rates of cardiopulmonary diseases, and flooding compromises food and water quality, leading to water-borne illnesses. These physical health issues are compounded by the mental health crises caused by chronic stress and trauma from frequent natural disasters.

3. Exclusion from Climate Investments: While investments in climate solutions have surged, Black communities have been largely excluded from these economic benefits. Opportunities in green energy, sustainability, and other climate initiatives rarely make their way into Black neighborhoods. Despite the promise of job creation and wealth building in the climate sector, Black Americans remain underrepresented in leadership roles and entrepreneurial opportunities.

A Path Forward: Centering Equity in AI and Climate

The challenges presented by Generative AI and Climate Change demand immediate and sustained action rooted in racial equity. As these industries grow, we must ensure that the benefits they offer are distributed equitably and that the risks they pose do not disproportionately harm Black communities.

1. In AI, We Must Invest in Black Talent: Building a more inclusive AI economy requires significant investment in education, training, and pathways for Black workers to enter and thrive in high-growth tech fields. We must also hold companies accountable for eliminating bias in AI systems to prevent further discrimination in financial services, healthcare, hiring, and more.

2. In Climate, We Must Prioritize Equitable Investments: Climate investments should prioritize the communities most affected by environmental changes. Black-led businesses and grassroots organizations need access to the growing pool of climate investment dollars, ensuring they have a seat at the table in shaping the green economy. Black communities deserve the same opportunities to benefit from the jobs, wealth, and innovation that climate investments are creating.

An Overdued Promise

We have been promised a future where innovation creates opportunities for all, but the current trajectory threatens to replicate the same patterns of exclusion that have persisted for generations. It’s time for us to radically reimagine how we grow economies.

We are long overdue for a future where prosperity is shared, marginalized communities are not left behind, and racial equity is not an afterthought but a guiding principle. The investments we make today will shape the future for generations. Let’s ensure that the future is one where all people—especially Black Americans—have the opportunity to thrive.