All right, so get this, we're going deep on AI
and the future of finance.
Yeah, and everyone's kind of freaking out about it, right?
Exactly, like will robots be managing our 401Ks?
Uh-huh, right.
And lucky for us, we've got this interview
with MIT professor Andrew Lowe,
he's like the E guy on this.
Oh yeah, he knows his stuff for sure.
So he actually thinks we're on the verge
of a financial revolution.
Whoa, a revolution, like what does that even mean?
Well, think about this, he says these LLMs,
those are the big AI brains everyone's talking about.
Right.
They can analyze those crazy financial reports,
you know, the ones that put you to sleep.
Oh yeah, the ones I pretend to read.
Ha ha, exactly.
Okay, but AI can actually understand those.
Apparently way faster than any human team
and they can spot all sorts of stuff,
like hidden risks or even get this,
market patterns that we totally miss.
So it's like having a super powered stockbroker
in your pocket.
Kinda, but there's a catch.
Oh, there's always a catch.
Right, so these LLMs, they can sometimes see things
that aren't really there.
Wait, what, like they imagine stuff?
It's called hallucinating.
Hallucinating, that sounds a little unsettling,
especially when it comes to my money.
I know, right?
So how do we trust these things with our hard earned cash
if they're seeing ghosts in the data?
That's a good question, maybe they need AI therapy.
Ha ha, maybe.
But professor Lowe's team is actually working
on something called fiduciary AI.
Fiduciary AI, huh?
Sounds fancy.
Well, it's a big deal in finance.
It basically means putting the client's interests first.
Oh, like a financial advisor who actually cares about you,
not just their commission.
Exactly, and they're trying to teach these AI's
to be like that.
So how do you teach an AI to be ethical?
It's pretty wild, they're feeding it,
not just market data, but like the whole history
of financial law.
Whoa, like all the ways people have tried to cheat the system?
Yep, all the shady stuff, so the AI can learn what not to do.
Ha ha, so it's like giving the AI a crash course
in financial crime.
Exactly, so hopefully it learns to be the good guy.
Wow, that's reassuring, but this is all
still pretty experimental, right?
Definitely, we're not going to have robot financial advisors
giving us stock tips tomorrow.
OK, good, because I'm not sure I'm ready for that yet.
Me neither, but it's definitely something to think about.
You know, what's really got me thinking
is this whole thing about AI and risk management?
Yeah, that's a big one.
Like imagine an AI that could actually
explain your risk to you.
Not just spit out numbers, but like tell your story.
Right, like hey, if the market crashes,
here's what could happen to your portfolio
and here's what you can do about it.
Exactly, and not in some jargon-filled report,
but in plain English.
Yeah, like a financial therapist who also
understands the market.
Ha ha, I like that.
And speaking of feelings, Professor Lowe's
work on sentiment analysis is pretty mind-blowing.
Oh yeah, the whole AI reading the market's emotions thing.
Right, like is the market feeling greedy today or fearful?
And it does that by analyzing news and social media.
Exactly, it's picking up on the vibes, the whispers,
the rumors.
So it's like AI is eavesdropping on the market's gossip.
Uh-huh, kinda.
Even fake news can move markets, and AI
could potentially spot those trends before they blow up.
Do you think those big hedge funds are already using this?
Honestly, I wouldn't be surprised.
Me neither.
But Professor Lowe seems to think this tech will eventually
be available to everyone.
That would be a game changer for sure.
Imagine having the same intel as the Wall Street bigwigs.
Yeah, that'd be pretty sweet.
But of course, there's got to be a downside, right?
It's always, right.
Professor Lowe keeps stressing we need more regulation,
like yesterday.
Why is that?
He's worried about an AI arms race, basically.
The bad guys using AI to gain the system even harder.
Oh, like AI that helps you cheat on your taxes?
Exactly.
Or even worse stuff.
So it's like a constant battle, the good AI versus the bad AI.
And we need to make sure the good guys win.
Well, that sounds like a good cliffhanger for part two,
don't you think?
Yeah, definitely.
More AI adventures to come.
Stay tuned, folks.
We'll be right back.
OK, so back to AI in finance.
Right, where we left off?
Yeah, remember that whole AI arms race thing?
Uh-oh, the good AI versus the bad AI.
Who's winning?
Well, Professor Lowe says we need to think about regulation,
like yesterday.
But wouldn't that stifle innovation
like hold back all the cool AI stuff?
He says it's about finding the right balance.
OK, easier said than done.
Right, but he makes a good point.
If we don't set some ground rules now,
things could get out of control later.
That's true.
Like with any new tech, they're always
going to be unintended consequences.
Exactly.
So it's better to be proactive than reactive.
I guess that makes sense.
But what kind of regulations are we even talking about?
Well, he throws out a few ideas.
First off, clear ethical guidelines
for how AI is developed and used.
So like a code of conduct for AI?
Yeah, basically making sure AI aligns with our values,
you know, like fairness, transparency,
all that good stuff.
OK, I can get behind that.
Right.
And then he's big on data privacy.
Oh, yeah, that's a hot topic these days.
Definitely.
So he's saying individuals should have control
over their own financial data.
Like the right to know how it's being used,
who has access to it, all that.
Exactly.
And the right to say no.
OK, I can see why that's important,
especially with all the data breaches happening.
Right.
And then finally, he talks about the need
for constant monitoring, auditing these AI systems.
So like making sure they're not going rogue.
Pretty much.
Looking for any bias, errors, or unexpected consequences.
It's like we need AI police, making sure everything's
running smoothly.
Uh-huh, maybe.
But seriously, we need some kind of oversight
to keep things in check.
I agree.
It's like we're giving these AI so much power,
we got to make sure they're using it for good.
Exactly.
And that brings us back to that whole job thing.
Oh, yeah.
Will robots be taking our jobs?
Well, Professor Lowe says some jobs will definitely
be automated, especially the ones that
involve lots of repetitive tasks or data crunching.
So like accountants and analysts might be out of luck.
Maybe.
But he's also optimistic that AI will create new jobs
in areas like AI development, data security, stuff like that.
OK, so it's not all doom and gloom.
Right.
It's more like a shift we got to adapt and learn new skills.
Easier said than done for some people, though.
True.
And that's where education and retraining come in.
So like going back to school to learn how to code?
Maybe.
But Professor Lowe thinks AI can actually
help with that too.
Like personalized learning programs
tailor to your needs.
Whoa, AI teaching is how to survive in the AI world.
Kind of meta, right?
Yeah.
But it makes sense.
AI can analyze your skills, your strengths,
and point you in the right direction.
OK, that's actually pretty cool.
I could see that being helpful.
Yeah, it's like having a career coach who also
happens to be a supercomputer.
Uh-huh, I like that.
But even with all the new jobs and training,
there's still going to be some bumps on the road.
Yeah, people are going to lose their jobs.
And that's a tough reality.
Definitely.
And Professor Lowe acknowledges that.
He says, policymakers need to step up and provide support.
Things like job training programs, social safety nets.
So it's not just about the tech.
It's about the people too.
Exactly.
We've got to make sure everyone benefits from this AI
revolution, not just the tech giants.
Right.
It's about creating a more equitable future for all.
Exactly.
And that brings us to another big question.
How will AI actually impact our everyday financial lives?
OK, now we're getting to the good stuff,
the stuff that affects our wallets.
Right.
So Professor Lowe thinks AI has the potential
to personalize financial services like never before.
Like those robo-advisors everyone's talking about.
Yeah, but think even more personalized,
like an AI that not only knows your financial data,
but also understands your risk tolerance, your goals,
even your emotional triggers when it comes to money.
OK, now that's a little creepy, like AI reading my mind.
Right.
But it could also be super helpful.
Imagine an AI that nudges you to save more
when you're about to splurge on something you don't need.
Or one that warns you about risky investments
that you're emotionally attached to.
Exactly.
It's like having a personal finance guru in your pocket.
I guess that could be pretty awesome.
But again, what about privacy?
Good point.
Professor Lowe emphasizes the importance
of transparency and control.
Like you should always know how AI is being used
and be able to opt out if you're not comfortable.
So it's all about having choices,
not being forced into using AI.
Right.
It's about empowering individuals, giving them
the tools to make informed decisions.
Makes sense.
But let's be real, most people don't even
read those long privacy policies.
True.
That's why we need clear regulations and easy
to understand explanations.
OK, so back to regulation again.
Yeah, it keeps coming up.
And for good reason.
So what else does Professor Lowe suggest?
He's big on auditing these AI systems for bias,
making sure they're not discriminating against certain groups.
Oh, yeah, that's crucial.
We don't want AI perpetuating existing inequalities.
Exactly.
So we need ways to measure and mitigate bias
in these algorithms.
That sounds like a whole new field of expertise.
It is actually.
AI ethics is becoming a big deal.
So it's not just about the tech itself.
It's about the human values that we embed in it.
Right.
And that's why it's so important for everyone
to be part of this conversation, not just the techies.
OK, so what can we do besides reading up on AI and all that?
Well, we can use our voices, contact our elected officials,
let them know we care about this stuff.
So like write letters, make phone calls.
Yeah.
And support organizations that are fighting
for responsible AI spread the word on social media.
Basically, make some noise.
Exactly.
The more people who speak up, the more likely
we are to see real change.
I like that.
It's about taking action, not just sitting back
and letting things happen.
And you know what else Professor Lowe brings up?
International collaboration.
Oh, yeah.
AI isn't bound by borders, is it?
Nope.
It's a global phenomenon, so we need global solutions.
So like treaties or agreements between countries
on how to develop AI ethically.
Yeah.
Something like that.
We got to make sure everyone's on the same page.
OK, that makes sense.
But that seems even harder than just getting our own government
to act.
True.
But it's essential.
We can't solve this alone.
It's a big challenge.
But hopefully we can rise to the occasion.
Yeah.
It's about working together, finding common ground,
and making sure AI benefits all of humanity,
not just a select few.
I'm feeling a little overwhelmed, to be honest.
It's a lot to process, I know.
But I also feel like this is important stuff.
We got to talk about it.
I agree.
And you know what?
We're not done yet.
There's more to come.
Wait, there's more.
I thought this was part two.
Uh-huh.
There's always more to learn about AI.
Oh boy.
OK, bring it on.
Stay tuned for part three, where we'll
talk about what we can all do to make a difference.
Don't go anywhere, folks.
We'll be right back.
OK, so we've covered a lot of ground here.
Yeah, my brain is kind of fried.
Mine too.
But it's been fascinating, right?
Totally.
Like, I thought I knew a bit about AI,
but this whole finance angle is crazy.
Right.
So much to think about.
And so much at stake.
Like, our jobs, our money, our privacy.
Yeah, no pressure.
Ha-ha, right.
But OK, let's focus on what we can actually do about all this.
Like, how can we make sure AI and finance is a good thing,
not a scary thing?
Well, I think the first step is just staying informed.
OK, that makes sense.
Knowledge is power and all that.
Exactly.
The more we understand about AI, what it can do,
what it can do, the better equipped
we are to advocate for responsible development.
So like, where do we even start?
Any good resources out there?
Oh, yeah, tons.
Like, MIT's Computer Science and AI Lab,
they've got a website with articles, videos, even
online courses.
Cool, I'll check that out.
And there's this group called the Future of Life Institute.
They're focused on the ethical side of AI, not just in finance.
Oh, yeah, I've heard of it.
They're the ones who got all those tech big wigs
to sign that open letter, right?
Exactly.
They're doing some really important work.
OK, so we can educate ourselves.
But what else can we do to actually make a difference?
Well, we can use our voices, contact our elected officials,
telling we care about this stuff.
So like, write letters, make phone calls, all that.
And support organizations that are fighting for responsible AI.
Donate, volunteer, spread the word on social media.
OK, so basically, be loud and be active.
Uh-huh, pretty much.
Every little bit helps.
I like that it's empowering.
We're not just helpless bystanders in this whole AI revolution.
Exactly.
We can actually shape the future.
That's a great way to put it.
So it's not just about building better AI.
It's about building a better society that can use AI for good.
Totally.
And you know what else we need to do?
What's that?
Talk to each other.
I have conversations about this stuff with our friends,
our family, our colleagues.
Yeah, I get people thinking about the implications,
the potential benefits, and risks.
Right, because the more we talk about it,
the more likely we are to make good decisions as a society.
That's so true.
Like, we can't just leave it up to the experts
to figure this all out.
Exactly.
We all have a role to play.
Well, I'm feeling a lot more hopeful now,
knowing that we're not alone in this.
Me too.
It's a big challenge, but it's also an incredible opportunity.
Yeah, to really shape the future.
Not just for ourselves, but for generations to come.
That's right.
And you know, that's what's so exciting about this whole AI
thing.
It's not just about technology.
It's about what kind of world we want to create.
I love that.
It's a reminder that we're all in this together.
Totally.
We got to work together, learn from each other,
and make sure AI is a force for good.
Well said.
On that note, I think it's time to wrap up this deep dive.
Yeah, I think we've covered just about everything.
Huge thanks to Professor Low for sharing his insights with us.
Yeah, he's a real visionary.
And to our listeners, thanks for joining us on this journey
into the world of AI and finance.
It's been a blast exploring this stuff with you.
We'll be back soon with more deep dives
into the topics that matter most.
Until then, stay curious, stay informed, and stay engaged.
And remember, the future is what we make it.