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Dean Emeritus Richard Schmalensee explained that while relying solely on solar and wind power presents challenges due to their variability, "averaged over their lifetimes, the price of wind and solar power per kilowatt-hour is lower than that of coal or gas."

In a recent Harvard Business Review opinion piece, referenced in this article, senior lecturer Elsbeth Johnsonwrote: "Leaders too often find themselves mired in the details of their teams, with debilitating consequences." She then outlined four challenges.

According to a working paper by associate professor John J. Horton, IDE digital fellow Emma Wiles, and co-author, applicants who used AI tools to improve their resume writing were 8% more likely to be hired and also received 8.4% higher salaries than those who didn't use automated help. "Using algorithmic assistance can help applicants express their skills more effectively and reduce bias or premature judgments based on writing errors," the authors noted.

Professor Andrew W. Lo said he believes that "perhaps within five years, AI will be able to replicate the investment style of renowned investor Warren Buffett." He noted that if AI can further develop capabilities similar to human intuition, the accuracy of medium and long-term inferences will be greatly improved. He also warned that the widespread use of AI could introduce new vulnerabilities. "If human intervention becomes difficult, the market could experience a rapid, flash crash-like decline, triggering a chain reaction of financial crises."

IDE digital fellow Matt Beane said: "There will be jobs lost because of AI, just as there have been with many other previous technologies. But the number of jobs lost is going to be a rounding error compared to the number of jobs changed."

Senior lecturer Eric Rosengren said: "It's not that there's isn't any economic data, there's just no federal government economic data. It's not a great situation for the Federal Reserve to have to be dealing with noisier data."

Professor Simon Johnson explained that the risk lies not only in technological innovation, but in the classic dynamics of financial panic: "These digital assets are creating a new layer of finance that currently lacks adequate security mechanisms. We already know what happens when a sector that manages demand deposits lacks solid collateral: trust is broken and mass exodus is triggered," he said.

Professor Catherine Wolfram said: "Carbon pricing is a central tool for stimulating decarbonization. It helps businesses, consumers, and investors make decisions that reflect the cost of emissions, rewarding lower-carbon choices."

Visiting senior lecturer Paul McDonagh-Smith said: "AI implementation isn't the same as AI adoption. If employees distrust AI or fear job disruption, executive acceptance can translate to workforce aversion. Senior leaders need to frame AI pilots as process redesigns. Establishing corporate AI governance early helps build confidence and trust."

Assistant professor Chara Podimata co-authored a recent study of LLMs during the 2024 election season. "Moving forward this research (and the methodology we propose) should become a staple of every election happening in the US," she said. "We need to know what information these models are giving, how they are calibrating their responses to different users, and what the models actually 'believe.'" (Source: Tech Brew)