Finance

Prof. Anna Stansbury speaks to the Financial Times’ Myles McCormick about a new study that found that chief executives at America’s largest low-wage employers had seen their pay rise 41 percent between 2019 and 2025, while the median worker earned 21 percent more income. “There’s been for several decades a shift in the balance of power from labor to capital in the US,” says Stansbury. “It seems unlikely that what’s happening now...can be used to infer a big secular shift in power beyond the ongoing steady trend that we’ve been seeing for a long time.”  

A 2025 report by MIT researchers found that 62% of accounting professionals worry about errors in AI generated outputs, writes Thomson Reuters. “AI is doing real, meaningful work in tax workflows right now with even greater capabilities coming. But it’s also generating real anxiety,” Thomson Reuters notes.  

In an article by The Minnesota Star Tribune’s Emma Nelson, Prof. David Autor discusses low sentiment among middle-class Americans regarding the U.S. economy. “There’s a belief that if you follow the rules, if you go to school and pay your taxes and pay your bills and send your kids to college and whatever, that you’re supposed to do better than the generation before you,” says Autor. “When that does not happen is “part of when [people] feel like society’s not functioning well.” 

Associate Prof. Taha Choukhmane speaks to Associated Press reporter Adriana Morga about explores the growing trend of consumers using AI for financial guidance, and his recommendation that AI be used as a tool in combination with other trusted sources. “I would encourage people to use AI to explain and define,” says Choukhmane. “If you’re interested in knowing what the stock market is, what the difference between a mutual fund and an index fund is, using AI to explain these concepts can be very useful because it can empower people to get the most out of these methods.”

Research Scientist Maria Jesús Saénz discusses the benefits and barriers to companies adopting AI in their supply chains for a Financial Times article by reporter Lucy Colback. “If you are having humans change their process for automation in order to substitute themselves, this is a very perverse thing,” Saénz says. “They want to keep their salary and might boycott the AI. [They may] be algorithm averse.” 

Prof. Thomas Levenson speaks with Financial Times’ “The Story of Money” podcast hosts, Gillian Tett and Robin Wigglesworth, about his book, Money for Nothing: The South Sea Bubble and the Invention of Modern Capitalism and how the South Sea Bubble, the 1720 stock market crash surrounding the British South Sea Company, compares to the current political climate. “One of the things about the South Sea Bubble itself is it’s almost always told as a morality tale: look at what greed does for you. It drives you mad, it ruins nations,” says Levenson. 

Times Higher Education ranks MIT as the number one university for business degrees in their 2026 World University Rankings list, highlighting the Sloan School of Management’s MBA courses, executive training programs, and broad undergraduate management course offerings. “There is an emphasis on innovation across all these topics. Many influential new ideas in business, including the field of system dynamics, were born out of work at the Sloan School.”

CNBC’s Greg Iacurci interviews Prof. Andrew Lo about the potential pitfalls of relying on AI for financial advice. “One of the things about LLMs [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,” says Lo. “When it comes to very, very specific calculations of your own personal situation, that’s where you have to be very, very careful.”

In a Forbes opinion piece, Joseph Coughlin, director of the MIT AgeLab, emphasizes the importance of place planning, which includes factoring climate risks in retirement decisions, and considering whether a community will work for an individual in the future. “If where we live increasingly shapes our health, mobility, access to care, social connection, and resilience, then retirement planning needs another dimension beyond financial preparedness,” writes Coughlin. “It is no longer simply, ‘Is this where I want to grow old?’ It is, ‘Will this place continue to support me as I grow older?’"

For The Hill, Senior Lecturer Robert Pozen and contributor Mark Iwry argue that the U.S. should implement federal legislation for automatic retirement savings plans. “Without burdening small employers, bipartisan auto-IRA legislation would make retirement saving easy for employees without an IRA or retirement plan at work,” write Pozen and Iwry. “Such legislation would extend tax-favored retirement savings to the tens of millions of workers now left behind, fulfilling the stated intent of the recent executive order ‘to ensure that every American worker has access to a simple, portable, low-cost retirement-savings option.’”

Joseph Coughlin, director of the MIT AgeLab, joins NBC News Now hosts Kate Snow and Zinhle Essamuah to discuss how Americans can prepare for retirement, reviewing several questions that can help individuals prepare for a longer life. “Most of us start thinking about retirement as somewhere between health and wealth, and that’s not incorrect, but it’s incomplete,” says Coughlin.  

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.”