How AI can help with financial decision making with Andrew Lo

In this episode

Professor of Finance at the MIT Sloan School of Management and CSAIL Andrew Lo believes AI can help everyday consumers make important financial decisions by democratizing access to quality finance advice. His research aims to address the challenges of deploying AI in finance by, for example, answering questions around responsibility and engaging with financial advisors to make sure such tools are useful in the field. Professor Lo is the faculty director for the FinTechAI@CSAIL research initiative. Find a full transcript of this podcast here.

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About the speakers

Andrew Lo

Faculty Co-Director, FinTech@CSAIL

Charles E. and Susan T. Harris Professor, MIT Sloan School of Management

Director, MIT Laboratory for Financial Engineering

Andrew Lo obtained his A.M. and PhD in economics from Harvard University in 1984, his B.A. in economics from Yale University in 1980, and graduated from the Bronx High School of Science in 1977. Lo began his academic career at the University of Pennsylvania’s Wharton School, where he was an assistant and associate professor from 1984 to 1988. Now, Lo is the Charles E. and Susan T. Harris Professor at the MIT Sloan School of Management and the director of MIT’s Laboratory for Financial Engineering. He later joined the MIT Computer Science and Artificial Intelligence Laboratory as a principal investigator. Some of his awards include: Batterymarch, Guggenheim, and Sloan Fellowships; the Paul A. Samuelson Award; the Eugene Fama Prize; and the IAFE-SunGard Financial Engineer of the Year.

Industry Impact
Andrew Lo’s current research spans on five areas:

Evolutionary models of Investor behavior and adaptive markets
Systemic risk and financial regulation
Quantitative models of financial markets
Financial applications of machine-learning techniques and secure multi-party computation
Healthcare finance

With the development of commerce and corporate governance, the use of financial engineering is a tool and a model for tending to the growth of organizations that have become important therefore raising the level for competitiveness and efficiency. Financial engineering helps to create, design, and implement new financial models and processes in order to find solutions for problems. This system helps to discover new financial opportunities: preparing models that require a great amount of research and rely on in-depth data analysis, simulations, risk analysis and stochastics. With that said, financial engineering can benefit organizations in seeking new solutions to various problems that include risk management, scenario simulation, and new product development.

Learn More

Podcast: The Intersection of Finance, Cryptography and AI with Andrew Lo

Moore’s Law Vs. Murphy’s Law in the Financial System: Who’s Winning?

MIT Laboratory for Financial Engineering