Part I: AI's Year of Reckoning – Betina Kitzler on Pilots, Production, and Proving ROI

Why do 95% of GenAI projects fail, and what are the 5% doing differently?In Part I of this Institutional Edge episode, host Angelo Calvello interviews Betina Kitzler, MIT Sloan Fellow and early GenAI advisor, about AI's practical applications for institutional investors in 2026. Kitzler explains why 95% of GenAI projects fail, emphasizing the critical need to define specific problems before implementation. She highlights AI's ability to process unstructured data—news, text, and non-standardized information—that traditional models cannot handle, creating potential advantages for investment decisions. The conversation addresses security risks, including prompt injection attacks, accountability structures, and the need for clear workflows and sandboxed testing environments for successful AI adoption. Part II explores quantum computing and strategic implementation.Betina Kitzler has run 80M € P&Ls at global companies including Unilever and Mars, and led crisis response programs for the Austrian government. As an early GenAI advisor, she helps global leadership teams translate emerging AI capabilities into practical operating models. An MIT Sloan Fellow, Kitzler specializes in making organizational transformation work in the real world, not just in PowerPoints. She currently advises an MIT deeptech venture on quantum simulation commercialization and writes a weekly newsletter called "AI and the Daily Madness," which has become essential reading for professionals interested in AI's practical applications. Her expertise bridges technical capability and business execution. In This Episode: (00:00) Introduction to Institutional Edge and guest Betina Kitzler (03:55) Is 2026 AI's year of reckoning moving from pilots to production (11:40) Using AI for better investment decisions through unstructured data (16:30) Workflow optimization, accountability, and cross-functional AI implementation (24:04) Security concerns, data privacy, and prompt injection attacks (32:27) AGI prospects, expert disagreement, and intelligence definitionsSend me your ideas on how to pitch an AI strategy!Like, subscribe, and share this episode with someone who might be interested, and please take time to leave us a review! 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:LinkedIn Newsletter: AI and the Daily Madness https://www.linkedin.com/newsletters/ai-and-the-daily-madness-7054518601348734976/LinkedIn Profile: https://www.linkedin.com/in/betinakitzler/Email Angelo: [email protected] Julie: <... Chapters (00:00:00) - Institutional Edge: The AI Whisperer(00:01:50) - Podcasters: Warm Up With Books(00:02:05) - Questions for the Future of Investment(00:03:09) - Is 2026, AI's Year of reckoning?(00:11:22) - Exogenous Friction Points in AI(00:15:33) - Will AI Improve Workflows?(00:16:28) - Do You Worry About Agencian Misalignment?(00:18:40) - Have You Had a Conversation About Gen AI?(00:21:24) - Chatbot: The Future of Security(00:26:10) - Interview With Bettina Kichler