The AI Implementation Gap: What's Stopping Asset Allocators?

"I feel like the adoption of an AI tool could potentially eliminate the need for other existing tools - it might not be a net add, it could be a net efficiency gain." - Melissa Lopez

In this episode, Angelo Calvello of The Institutional Edge interviews Melissa Lopez, former Managing Director at James Irvine Foundation, about AI integration in institutional investment management. With 15 years of endowment and foundation experience managing multi-billion dollar Bay Area portfolios, Lopez reveals why allocators struggle with AI adoption despite clear productivity benefits. She discusses cultural barriers, leadership challenges, and practical implementation strategies, distinguishing between true AI integration and misconceptions about AI exposure through venture portfolios. Lopez advocates for immediate experimentation over wait-and-see approaches, emphasizing relationship-driven business fundamentals while embracing technological transformation for better beneficiary outcomes.

In This Episode:
(00:00) Introduction - Melissa Lopez, AI integration discussion
(01:56) AI benefits for allocators, productivity and operational efficiency
(05:14) Barriers to AI adoption, performance pressures and misconceptions
(08:52) Cultural mindset challenges and leadership awareness issues
(13:16) Build vs lease AI solutions, third party considerations
(18:37) Peer-to-peer communication and industry knowledge sharing
(28:02) Future AI integration timeline and relationship-driven business
(30:57) Worst pitch story, management fee focused manager

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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:
Link to Melissa Lopez’s article: https://www.pionline.com/opinion/pi-opinion-AI-hiring-for-the-future
Melissa Lopez: https://www.linkedin.com/in/melissaelopez/
Email Angelo: [email protected]
Email Julie: [email protected]
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