What is the best use of artificial intelligence for allocators? Try helping a pension fund make investment decisions.
Asset owners are increasingly interested in AI, although mainly for clerical tasks. But not Massachusetts Pension Reserves Investment Management, the $22.2 billion investment fund that manages the assets of multiple Bay State retirement plans. The fund just announced plans to develop an artificial intelligence model to help it gather and manage data for investing, as well as management functions.
The AI model would be trained on decades of MassPRIM’s data, according to committee members during the organization’s January 30 meeting.
According to the fund’s stated 2024 objectives, it wants to explore “incorporating AI into PRIM’s business processes and evaluate potential solutions” and look into “applications of large language models in investment analysts/monitoring processes.”
At the meeting, staffers mentioned that development of the AI tool would continue over the year, but they noted these would be “baby steps” toward integrating artificial intelligence into the fund’s operations.
Some pension fund CIOs say they are mainly using the technology for note-taking and developing meeting summaries, but using AI for making investment decisions is something in which they are increasingly interested. The board at MassPRIM intends to dive into it now.
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Tags: AI, Artificial Intelligence, Mass PRIM, Massachusetts Pension Reserves Investment Management