What happens when a retirement fund's AI models start outperforming human investment decisions?

In this episode of The Institutional Edge, host Angelo Calvello, CEO of Rosetta Analytics, interviews Mark Steed, Chief Investment Officer of the Arizona Public Safety Personnel Retirement System. Mark discusses his hands-on approach to implementing AI in institutional investing, focusing on two primary use cases: operational efficiency through automated document processing and enhanced decision-making via machine learning. The conversation explores practical challenges including data security, board governance, and talent requirements. Mark shares his vision for AI-powered investment workflows and explains how proper governance frameworks can encourage innovation without compromising oversight in retirement fund management.

In This Episode:

(00:00) Introduction of guest Mark Steed, AI innovation discussion

(03:02) AI use cases: operational efficiency and decision making

(09:30) Manager selection process and generative AI applications

(16:37) Building governance frameworks for AI implementation and oversight

(24:44) Key requirements: talent, data, and compute infrastructure

(29:35) Future wishlist: AI-powered investment workflow automation

(32:36) Multi-agent systems and the future of investing

(33:52) Worst investment pitch: Formula One racetrack story

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Dr. Angelo Calvello is a serial innovator and co-founder of multiple investment firms, including Rosetta Analytics and Blue Diamond Asset Management. He leverages his extensive professional network and reputation for authentic thought leadership to curate conversations with genuinely innovative allocators.

As the "Dissident" columnist for Institutional Investor and former "Doctor Is In" columnist for Chief Investment Officer (winner of the 2016 Jesse H. Neal Award), Calvello has become a leading voice challenging conventional investment wisdom.

Beyond his professional pursuits, Calvello serves as Chairman of the Maryland State Retirement and Pension System's Climate Advisory Panel, Chairman of the Board of Outreach with Lacrosse and Schools (OWLS Lacrosse), a nonprofit organization creating opportunities for at-risk youths in Chicago, and trustee for a Chicago-area police pension fund. His career-long focus on leveraging innovation to deliver superior client outcomes makes him the ideal host for cutting-edge institutional investing conversations.

Resources:

Mark Steed Bio:  https://www.psprs.com/about/psprs-executive-team/

Arizona Public Safety Personnel Retirement System: https://www.psprs.com/

Chapters

(00:00:00) - What's the Governance of AI and Machine Learning(00:00:32) - Institutional Edge: Asset Allocators, AI(00:02:03) - AI Use Cases and Their Benefits(00:11:05) - AI Decisions: Verification and Explainability(00:15:48) - On Board Experience with AI and Machine Learning(00:23:46) - What are the two or three other key features that you need to(00:28:35) - CIO Network: What's AI Doing for You?(00:31:47) - AIBM's Data Science Capability(00:32:59) - The Worst Investment Pitch Ever Heard

Episode ID: 1000722625516

GUID: https://permalink.castos.com/podcast/65528/episode/2111618

Release Date: 19/08/2025, 09:00:00