In a lecture in São Paulo, Brazil, John C Head III Dean of MIT Sloan, Richard M. Locke, emphasized that the AI ​​revolution in education is inexorable and will provide students with better judgment, more advanced analysis, more robust decision-making, and a deeper use of distinctly human qualities. In other words, AI should not replace the person, it should help them operate at a higher level.

In this year's US News & World Reports' Best Business Schools specialty rankings, MIT Sloan ranked #1 in Business Analytics, Entrepreneurship, Production/Operations, and Supply Chain/Logistics, and #2 in Executive MBA Programs.

"The problem that we have to solve is not whether AI has enough expertise," said professor Andrew W. Lo. "The answer right now is, clearly, AI has the financial expertise. What they don't have is that fiduciary duty. They don't have the ability to suffer consequences if they make a mistake to the same degree that a human advisor does." The notion of putting a client's interest ahead of yours "has no teeth" without responsibility or legal liability, he said.

If a company is struggling financially, saying AI drove cuts definitely makes for a better story, said professor Thomas Malone. There's also a long history of overshooting predictions of the impact and adoption rate of new tech, he said. It happened in the dotcom era and with autonomous driving. "I do think many people are overestimating the rate at which jobs will change," Malone said about AI projections.

Senior lecturer Sharmila C. Chatterjee said: "The future of retail is a hybrid of online and offline channels. To keep customers coming back, retailers need to make strategic investments, experiment with new approaches, and, inevitably, engage in some trial and error as they figure it out." The article links to a story in MIT Sloan's "Ideas Made to Matter."

Investors are finding all sorts of potential of uses for large language models, ranging from the intellectual to the mundane. The challenge of interpreting what the models do, though, often holds back their use in practice. Since early 2024,  Professor Hui Chen has worked on ways to help. In his research, Chen has explored techniques to help investors understand what's happening inside the LLMs

It's not just ordinary investors who struggle with selling. A paper by associate professor Lawrence Schmidt and co-authors looked at the performance of 783 institutional investors. These professionals outperformed the market with their buy decisions — and gave back some of that performance with poor sell decisions. The study covered 16 years and involved about 2.4 million buy trades and 2 million sells. The authors concluded that portfolio managers devote "more cognitive resources to buying than selling."

A new study by professor Thomas W. Malone and co-authors, mapped 13,275 commercial artificial intelligence applications against a taxonomy of 20,000 work activities drawn from the U.S. Department of Labor's occupational database. The finding: 92% of those activities have zero AI coverage. The top 1.6% of tasks — almost entirely content generation and information retrieval — capture more than 60% of all AI market value.

In this episode of CNBC's "Morning Call," professor of the practice Gary Gensler discussed private credit markets, stable coins, and the impact of the Iran war on the U.S. and global markets. For additional media and to learn more, visit Power & Consequences, a podcast created by MIT Sloan professor Simon Johnson and Gensler.

Professor Simon Johnson and co-author wrote: "The best way to step back from the brink of global catastrophe is to recognize Iran's economic incentives. Iran needs to export oil and gas in order to pay for essential imports, including food and medicine, as well as for the inputs needed to rebuild and improve its infrastructure."

Professor Stuart Madnick and co-author wrote: "Boards should recognize that their most effective lever is not trying to add technical expertise at the board level or relying on training that quickly becomes outdated in an AI-driven threat environment. Instead, they should focus on having the highest quality cybersecurity leadership and empowering them to maximize their impact."

Institute Professor Daron Acemoglu wrote: "Although the world is much less dependent on oil than it was in the 1970s, a protracted oil price hike will impact inflation and raise the prices of several other products heavily reliant on oil or transport services. It would also slow down hiring, hampering economic growth and nudging up unemployment in the US and in other economies."

In this storied transit system, history runs deep: The Green Line still passes through the country's oldest subway tunnels, built beneath the Boston Common at the end of the 19th century. Yet the MBTA is remarkably willing to explore new approaches, too. That's thanks in large part to a trio of MIT alumni including Karti Subramanian, (MBA '17). Together, they've been helping redefine what innovation looks like in one of the nation's longest-running transit systems.

MIT IDE research fellow Michael Schrage and MIT SMR editorial director David Kiron wrote: "Productivity in an era of generative AI is not output per unit of input. It is also determined by measurable learning per unit of interaction. Organizations that build the machinery to run the cycle — verify, evaluate, capture, apply — will build that capability over time. Those that do not will consume AI without converting it into knowledge."