There is a dual challenge of meeting increasing global energy demand alongside an urgent need for transition to clean energy sources. Despite major progress in renewables, fossil fuel use has actually increased in recent years. Instead of thinking solely about an energy transition, we might look for "energy addition" opportunities—adding in new sources of breakthrough renewable technologies like nuclear fission, fusion, and geothermal for new demand. What's the catch? The development required to scale these novel cleantech projects to commercial viability requires significant investment. Promising tech in a lab can often hit the dreaded "Valley of Death", the point where increased risk and uncertainty is a major barrier to commercial deployment. Here's where financial engineering comes in, like deploying mega funds and adopting phased development models akin to biotech. These strategies can de-risk and attract the critical investment needed to get us through the Valley of Death and into a much more sustainable future. Andrew W. Lo is the Charles E. and Susan T. Harris Professor, a Professor of Finance, and the Director of the Laboratory for Financial Engineering at the MIT Sloan School of Management.Lo's current research spans four areas: evolutionary models of investor behavior and adaptive markets, artificial intelligence and financial technology, healthcare finance, and impact investing. He has co-founded several asset management and biotech companies, and sits on the boards of several for-profit and non-profit public and private healthcare organizations.Lo holds a BA in economics from Yale University and an AM and PhD in economics from Harvard University. This talk was given at a TEDx event using the TED conference format but independently organized by a local community.

In his 17 years as dean, David Schmittlein led the transformation of MIT Sloan into a management school uniquely positioned for the future and “the best version of its distinctive self.”

Tax season is so stressful that it’s driving some people to therapy. A new survey suggests a big part of the problem is the complexity of filing taxes.

One in five Americans is making 2025 the year they save more money, and there is a growing trend of asking generative AI technology for advice on how to achieve personal finance goals. But is using ChatGPT or Gemini to improve your personal balance sheet the right move? Experts say it’s complicated.

Alexander Hamilton, whose financial acumen financed George Washington’s army, and very likely paved the way to win the American Revolution, was a big fan of the national debt. “A national debt, if it is not excessive, will be to us a national blessing,” Hamilton wrote. Not only does it let a country finance growth by borrowing to stimulate future revenue, but a national debt also gives lenders a stake in the country’s success.

Economic challenges like inflation, recession fears and geopolitical uncertainty are top of mind for many as 2024 draws to a close. A recent Deloitte report found that 73% of respondents globally are concerned about rising prices, reflecting the financial strain on households around the world. Against that backdrop, generative artificial intelligence is emerging as a popular tool in personal finance, reflecting the evolving ways in which people think about budgeting, investing and financial planning.

However, while the technology is advancing rapidly, experts caution that these AI tools should complement — not replace — traditional strategies.

Arynton Hardy, a wealth manager in Los Angeles, uses artificial intelligence daily.

"Almost every single meeting I have with a client, I utilize an AI summarizer that gives me notes, gives me follow-ups, gives me to-dos," Hardy said. His employer, Savvy Wealth, is a tech startup focused on providing AI innovations to its growing roster of financial advisors and high-net-worth clients.

Hardy said AI tools regularly save his team hours on data entry, portfolio monitoring, and other back-office tasks, giving him more time to meet with clients.

If I asked Dall-e to draw me a picture of a cat juggling nine balls in the style of a French impressionist, it would do so in seconds. And once done, that painting would be far better than anything I could possibly hope to do. But, it wouldn’t be perfect – because it would appear that Chat GPT’s artistic side is too right-brained to actually count balls.

Artificial Intelligence (AI) is advancing at an unprecedented pace, transforming various industries and redefining traditional roles. The mortgage intermediary profession will be no exception. As AI systems continue to develop, they are outperforming humans in specific tasks, compelling professionals to rethink their strategies and adapt to these technological shifts. If someone invents the steam powered weaving loom, learn how to work the loom, don’t be a weaver.

A new MIT study by professor Andrew W. Lo and co-author suggested that while large language models (LLMs) like ChatGPT are fairly new developments for financial advisors, they could be trained to adapt to simulate both the predictive and empathetic behaviors of human advisors. "To achieve performance that rivals the best human advisors, we will need to incorporate some notion of selection, evolution, and fitness into the ongoing training of LLMs," the study said, and, "if LLMs can be made safer and more robust, they have the potential to transform our financial lives."

In a bid to overcome some of the commercial challenges faced by expensive new gene therapies, Quantile Health has raised $6 million for a financial platform that’s designed to spread out costs and widen access.

The company was co-founded by MIT professor Andrew Lo, whose ideas formed the intellectual foundation for the company BridgeBio, as part of his quest to change how drug development is financed.

An event study by Professor Andrew W. Lo, research affiliate Manish Singh, and co-author, shows that acquisition, product development, investment, regulation, earnings guidance, and analyst ratings significantly impact the stock prices of biopharmaceutical companies.

Professor Andrew Lo proposed a $30bn cancer "megafund" a decade ago to combine drug testing projects to diversify risk. The idea had already inspired smaller-scale applications at companies such as BridgeBio and Roivant, he said. "If we can change the incentives and reduce risk, the increased reward will bring more money," Lo said.

The study of finance can easily be split into two eras: before and after Harry Markowitz. The economist, who died on June 22, was one of the first academics to introduce abstract mathematical concepts to investment decision-making. "Everyone knew about diversification — not putting all your eggs in one basket," said professor Andrew W. Lo. "But Markowitz told us more than that. He told us how many eggs we should put in the different baskets, and how to diversify in a systematic way."