AI, Financial Markets, and the Economy – Wharton Future of Finance Series

Knowledge at Wharton

Episode Description

Could artificial intelligence reshape the economy on the scale of earlier general-purpose technologies — and what are financial markets telling us about its potential? In this episode, host and Wharton professor Itay Goldstein speaks with Maryam Farboodi and Penn professor Jesús Fernández-Villaverde about the economic implications of AI and how investors are responding to its rise. They explore evidence that financial markets are pricing in the possibility of transformative AI, its potential effects on productivity and inequality, the role of regulation and adoption, and whether soaring investment and valuations could include a bubble component. SERIES OVERVIEW Hosted by Wharton finance professor Itay Goldstein, this limited series takes a deep dive into the cutting-edge insights and pioneering perspectives of experts in finance, academia, and industry. Discover how artificial intelligence is reshaping financial markets and institutions as we explore its impact on investing, financial stability, the economy, and the future of work in finance.

---- The Wharton School of the University of Pennsylvania is committed to sharing its intellectual capital through Knowledge at Wharton, the school’s online business analysis journal.

Launched in 1999, Knowledge at Wharton offers free access to:

- Articles, podcasts, and videos highlighting Wharton faculty research and analysis of current business trends - Interviews with book authors from Wharton School Press - In-depth series of curated content like Wharton Executive Education’s Nano Tools for Leaders - A searchable database of more than 10,000 articles covering all aspects of business - A weekly newsletter that delivers Knowledge at Wharton insights directly to your inbox

Visit the Knowledge at Wharton homepage: https://whr.tn/3qUpSBE Subscribe to the Knowledge at Wharton YouTube channel: https://whr.tn/3DEAgAU

Brief Summary

AI's impact on the economy and financial markets is discussed, highlighting investor beliefs and concerns about inequality.

Key points

  • AI's Transformative Power. Jesus compares AI to past general purpose technologies, predicting a societal reshaping.
  • Market Beliefs in AI. Mariam's research reveals surprising investor confidence in transformative AI.
  • Optimism About AI and Inequality. Jesus argues that AI will not increase income inequality in the long term.
  • The Importance of Questioning. Education should focus on teaching students how to ask the right questions.
  • Insights on Education. The conversation covers the challenges and insights regarding education and AI.
  • Adapting to AI. Students must learn to enhance their skills with AI, not be replaced by it.

Ask about Knowledge at Wharton

Tension

50/ 100Some tension

Related episodes