At September’s board meeting, a veteran investor and financial “market thinker” told TRS’ board of trustees to be aware of the risks of not actively integrating new machine learning technologies associated with artificial intelligence, or AI.
Greg Jensen, co-chief investment officer at Bridgewater Associates and its Artificial Intelligence Associate Labs said AI is helping investors quickly become more efficient and productive. TRS has had an investment relationship with Bridgewater since 2009.
“My recommendation to this board is that the tools (of AI) are so useful (to TRS’ efficiency and productivity), that there’s so much more risk to an organization like yours of slowing that down … But the reality is the risks of not moving aggressively are probably bigger today … than the security risks that exist,” Jensen said.
TRS has had an AI Use Policy in place since October 2023 that helps guide employees’ work. No member pension or health data is shared online. But groups including the Investment Management Division are already using AI internally to drive efficiency and strengthen how the fund manages investment risk.
TRS Chief Executive Director Brian Guthrie commented that when TRS began talking about AI several years ago, he never wanted TRS to be in the position where a human was not making a final investment decision. Jensen agreed that this standard remains reasonable. Jensen added for TRS, promoting a strong AI use case will be helpful in attracting the best investment talent.
To view the presentation, visit September’s webcast page, navigate to the Investment Management Committee video and choose the fourth video in the playlist.