Alex Ambroz

They can be useful, but we can't just offload the most important part about being an allocator, which is the analysis side.

What we're doing up here in analyzing the markets, the investments, the firms, the people, everything.

So AI, as an example, on talent and recruiting, it's made things a little bit more difficult.

So back in the old days, meaning just a few years ago, you'd get a lot of different and a spectrum of the quality of resumes.

But now everyone can use an AI tool to have a perfect resume.

In operational efficiency, it's really helped.

This has been one of the greatest places that AI has come into play for allocators and for a lot of other folks.

So for example, it will take notes for you.

It will take meeting minutes.

It will draft emails.

It will sort all of the incoming files that come in.

So it's allowed you to not have to do

a lot of the drudgery work.

The key phrase that we had at the Cleveland Clinic when I worked there was maximum value per unit of effort, max view.

So max view in terms of operational efficiency for an office means that a managing director, for example, should always, for the most part, be doing managing director work.

And if there's something that the managing director or the CIO is doing that could be done by an analyst or an intern or could be offloaded to a third party tool, then we should go for that.

And AI tools really help with that.

The first thing I tell you, and this is, I just want to reference a great white paper that all allocators should take a look at, which is from Barber, Huang, and Odeon, 2019.

And one of the key things they found- That's it for today's episode of How I Invest.

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