Andrew W. Lo (Massachusetts Institute of Technology (MIT) – Laboratory for Financial Engineering) and Jillian Ross (MIT CSAIL) have posted My Co-Pilot, My Friend: Large Language Models and Fiduciary Duty on SSRN. Here is the abstract:
As large language models (LLMs) assume increasing responsibility in financial advisory roles, their capacity to carry out their fiduciary duties becomes more critical. We consider differences between LLMs and traditional robo-advisors in meeting legal and ethical obligations of care and loyalty. We propose a research agenda for operationalizing fiduciary standards in AI systems through normative frameworks, compliance modules, and regulatory co-design. By aligning LLMs with fiduciary principles, we aim to democratize trustworthy financial advice while anticipating broader implications for the use of LLMs in other professional domains governed by ethical obligations.
To receive new posts from Legal Theory Blog by email, get a free subscription to Legal Theory Stack.
Lawrence Solum