Prof. Taha Choukhmane co-authored a new study examining how Americans are using AI in their financial planning and found that “AI consistently gave better advice to people who asked better questions,” reports Daniel de Visé for USA Today. “It might be that AI is going to be a little more useful for people who already know a little bit about finance and financial literacy,” Choukhmane explains.
CBS News reporter Aimee Picchi spotlights Prof. Andrew Lo’s recent comments on using AI for retirement planning. “Lo stressed that it's important to ask critical questions when using AI for retirement advice, such as prompting an AI to say where it might be wrong and to list its assumptions and uncertainties,” writes Picchi.
Prof. Andrew Lo speaks with with Greg Iacurci at CNBC about using AI for personal finances. “One of the things about [large language models] that I find particularly concerning is that no matter what you ask it, it’ll always come back with an answer that sounds authoritative, even if it’s not,” said Lo. ″[People] should be using AI for financial planning — but it’s how they use it that’s important.”
Prof. Andrew Lo speaks with CNBC reporter Greg Iacurci about using AI systems for financial planning and advice. “The problem that we have to solve is not whether AI has enough expertise. The answer right now is, clearly, AI has the [financial] expertise,” says Lo. “What they don’t have is that fiduciary duty. They don’t have the ability to suffer consequences if they make a mistake to the same degree that a human advisor does.”
Writing for The Boston Globe, Prof. Christopher Knittel and graduate student Fischer Espiritu Argosino make the case that in Massachusetts the “current compensation structure for the electricity produced by solar panels turns a climate solution into an inequitable cost shift that burdens many residents.” They add: “The state needs to prioritize large-scale wind and solar deployment and fix how residential solar exporters are compensated…. Massachusetts has long been a clean-energy leader. It can remain one by showing that decarbonization and affordability can go hand in hand.”
Prof. Simon Johnson speaks with CNBC Squawk Box reporter Andrew Ross Sorkin about the state of private credit. “The opacity of this sector has become a problem,” says Johnson. “I think disclosure, at least to the authorities and publicly, would be healthy for everyone.”
A study by Prof. Taha Choukhmane and his colleagues has found that “by switching retirement contributions to the account with the higher match rate, 1 in 5 couples could increase their savings by an estimated $750 per year,” reports Lorie Konish for CNBC. “The absence of coordination can be a choice, but it’s a costly choice,” says Choukhmane.
Forbes reporter Jeff Kauflin spotlights Andres Santos MBA '21, co-founder of Común, as one of the six entrepreneurs making their debut on the Forbes Fintech 50 list. Común is a “digital bank for Hispanic immigrants,” writes Kauflin. “Customers can open checking accounts through an app using a passport or ID from their home country and use it for direct deposit, a debit card and international money transfers.”
Prof. Neha Narula speaks with Bloomberg reporters Scarlet Fu and Tim Stenovec about the financial, technological and regulatory risks associated with the rise in GENUIS-compliant stablecoins’ transition to mainstream use. “This is going to apply to more than just stablecoins,” says Narula. “This is going to apply to all tokenized assets. We have to think about the decentralized blockchains behind them. All blockchains are not created equal and right now there’s no indication for how users or stablecoin issuers or other market participants should think about these different blockchains.”
Prof. Andrew Lo speaks with Wall Street Journal reporter Peter Coy about why he feels current AI systems aren’t suited to serving as financial advisors and his goal to create “an AI financial adviser that is a true fiduciary—namely, an entity that always puts the client’s interests first and tailors its advice to their particular needs, including emotional needs.” Lo notes that: “The AI people are using now can be dangerous, especially if the user isn’t fully aware of the biases, inaccuracies and other limits” of large language models.
Prof. Christopher Palmer speaks with Marketplace reporter Carla Javier about the rise in auto loan delinquencies, noting that defaulting on a car payment is usually a borrower’s last resort, since people often need cars to get to work, so they’re more likely to not pay other bills first. “That could include not paying their mortgages or their rent, in part because it takes a long time to evict someone or to foreclose on a house,” Palmer explains.
Edward Woodford SM '15 founded Zerohash, a crypto and stablecoin infrastructure company, aimed at helping “financial institutions and fintechs build out their own products for stablecoins, crypto trading, and tokenization,” reports Ben Weiss for Fortune. “Over eight years, Woodford has managed to ride multiple crypto booms and busts,” writes Weiss. “It’s not just that we’re a survivor,” says Woodford. “We’ve actually thrived in that market, and actually now, I think we can accelerate that even further.”
Prof. Andrew Lo speaks with Wall Street Journal reporter Cheryl Winokur Munk about how AI tools could be used to help people with financial planning. Winokur Munk writes that Lo recommends providing “just enough information to get relevant answers. And leave out highly personal details like your name, address, salary, employer or specific assets…as such details put people at risk should the AI be compromised.” Lo also advises “trying several AI platforms,” writes Winokur Munk. And “the advice should be run by a professional, trusted family or friends. Be a bit skeptical and double-check with humans.”
Prof. Andrew Lo speaks with NBC Boston reporter Daniela Gonzalez about how AI tools could be used as a starting point to help people manage their monthly expenses and improve their savings strategies. Lo notes that AI tools “can tell you, given the kind of things you're looking to purchase, where the various deals might be.” He added that “once you get the feedback, you have to make sure that what you're getting is legit, versus what they call hallucinations that large language models are likely to do on occasion.”
Writing for Financial Times, Prof. Kristin Forbes explains how to approach to tariff trade-offs. “If even a fraction of the tariffs that have recently been announced are implemented, inflation will pick up and domestic activity will slow — at least over the next year or so,” explains Forbes. “The Fed will need to trade off mitigating the impact of another round of inflation with supporting employment.”