Press

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."