MIT Economist on Finance, AI, and Human Behavior

Sarah Hansen interviews financial economist Andrew Lo on Chalk Radio, exploring how to make finance accessible to everyone. Lo discusses the importance of financial literacy, sharing personal experiences with dyscalculia and emphasizing that finance is a language everyone can learn. He advises against relying solely on ChatGPT for retirement planning but encourages using it for initial research. Lo also touches on ethical concerns surrounding AI in financial advice and the potential for job displacement due to rapid technological advancements. Reflecting on his career, Lo shares how personal experiences with cancer led him to focus on finance's role in societal impact, particularly in areas like energy transition. He highlights the challenges of human behavior in financial decision-making and introduces his Adaptive Markets Hypothesis. The conversation concludes with Lo discussing his approach to teaching, influenced by his own learning struggles and the importance of making complex concepts understandable, and honoring his mother's sacrifices and guidance.