Japan’s Chief investment officer for Government Chief Investment Fund (GPIF)
Japan’s Chief investment officer for Government Chief Investment Fund (GPIF) requested Sony Computer Science Lab to build an artificial intelligence cyber hound robot to assist the organization to supervise the external fund officers who manage the $ 1.6 trillion of GPIF’S assets. The robot would be tasked with performance measurement and management by catching investors who abandon their goals, screen prospective portfolio managers based on their past performance record, and differentiate between their skills in bringing profits. The project aims to improve the organization’s finance management. The organization has been losing millions in investments because the portfolio managers cannot accurately determine the stock exchange investment behavior. Hence GPIF will adopt the implementation of the artificially intelligent robot, which will enable the organization to turn around its profits by accurately determining investment patterns through massive portfolio comparison and data calculation.
In my opinion, the company does not need artificial intelligence robots to measure and manage its performance. The robot can expose the organization to privacy risks because its handlers cannot determine how the machine utilizes its codes to scrutinize how billions of dollars are invested. Hence the situation may lead to transparency issues with the stakeholders. However, the organization should first identify the problem and compare it to what the GPIF program is trying to achieve, how will its effects be determined, and how the program is currently performing. Secondly, the Chief Investment officer should develop a program Logic model to determine how the program will work to solve the issue of low investment returns. Thirdly, the management should build a logic model and use it to determine primary evaluation points to make it clear on how to solve the financial losses in the organization. The logic models will develop a shared vision between the managers and stakeholders on how the program is supposed to work. Fourthly, the portfolio managers can regularly measure their investment activities for accountability, communicating performance index to stakeholders, and implementing measures for improvement. Finally, the GPIF management should use the information from the program logic tools to undertake outcome measurements and improvement strategies.
The article relates to performance measures and management because GPIF seeks an excellent way to tract its investment projects and how to manage its results. The organization’s management had employed a logic Model process to develop and analyze the performance of GPIF. GPIF’s Logic Model led to determine the linkages between program resources, activities, output, customers, and the short and long-term outcomes of their investment approach. After identification of the portfolio, the company realized that managers’ inefficiency to determine appropriate investment behaviors due to human limits was the cause of the problem.The company decided to employ improvement and management measures to turn around the organization’s profit. The introduction of the artificially intelligent robot was one of the measures that the organization employed to implement accurate performance measurement and management. The robot’s primary task is to scrutinize existing investment behavior and create an opportunity for medium-sized firms to be in the fund’s roster of external managers. Also, the system will be able to measure finance trends in the stock exchange market and determine the next investment patterns. However, the measurement and management strategy employed by GPIF will may transparency issues, which might bring mistrust with the stakeholders and customers.