Robots are good investors too!

Robots can be excellent investors, according to a new study from the University of Oxford.

The new research found a robot can select the best private equity (PE) funds just by reading fundraising prospectuses. The machine used within the study was able to select funds that generate returns that are 5% higher each year compared with average funds.

The research paper, Limited Partners versus Unlimited Machines: Artificial Intelligence and the Performance of Private Equity Funds, was compiled by a team of researchers led by information that investors pay significant attention to during their due diligence process, such as the PE firm’s reputation and past performance, is ultimately unrelated to PE fund performance. In contrast, investors do not seem to react to the qualitative information in fund prospectuses, but that information can be used by a robot to predict returns.

Phalippou said: “Technical documents are written exclusively for highly specialised and large institutional investors, and the robot beat most of these large professional investors. That’s a world premiere.”

Productivity boost from AI worth £31bn

The adoption of Generative Artificial Intelligence (AI) could add 1.2% to the level of UK productivity, says a new KPMG report. In terms of the 2022 level of GDP, that’s £31 billion additional output in the UK every year.

KPMG’s analysis shows a relatively small but significant overall effect of the technology, which could impact around 2.5% of tasks performed across the UK, allowing workers to be redeployed to other tasks and activities.

The report found that the impact across different occupations is relatively varied; while 10% of jobs may be facing the most significant impact, with more than 5% of their tasks affected, another 60% of jobs could face little to no direct

We still need the humans

There is a new focus on staff wellbeing as part of the decisionmaking process when adopting new technology, research from ICAEW’s technology faculty on mid-tier accountancy firms has found. This highlights a shift away from putting clients’ needs first, says the institute.

With mobile app and digital skills among features that ranked highly during interviews, the findings suggested that it was important for mid-tier accountancy firms and the profession to “think digitally”, possibly motivated by a challenging recruitment market and skills shortages in the profession, as well as the need for firms to ensure staff are fulfilled at work.

ICAEW head of data analytics and tech, Ian Pay, said: “Giving staff the opportunity to voice concerns, share improvements and develop new skills is key, and effect from Generative AI. For example, the report claimed 7% of auditors’ jobs would be automated, compared with 43% for authors, writers and translators. will accelerate tech adoption in mid-tier accountancy firms. We’ll continue to support firms and the profession as they make the move to even greater use of technology.”

The wider implications that Generative AI may have on the economy and society are highly uncertain, said KPMG.

Please

ChatGPT

OpenAI, the company behind ChatGPT, has chosen London to open its first office outside the US. It said that England’s capital was an obvious choice because of its “vibrant technology ecosystem” and “exceptional talent”. It already has some staff

Those

The new rules mean crypto firms must ensure that people have the appropriate knowledge and experience to invest in crypto. Those promoting crypto must also put in place clear risk warnings and ensure adverts are clear, fair and not misleading.

Study Hub a big hit

Thank you ACCA. I have just taken a look at the new Study Hub and it certainly lived up to the hype!

However, with a full study texts available from ACCA – which will save me some money and might justify the exam fee increase – I am not sure why anyone else would be publishing textbooks!

Reading comments on social media, I saw many people were shocked about the free study texts. I am not sure ACCA has sold this in the launch. One thing I would say is that a lot of people seem to think what is on the Study Hub will be enough to get them a pass, without purchasing any other material or going on a course. If you want to get qualified you do still to get the help of the expert tutors, too.

I do have one concern here too, as competition often leads to innovation and new products. With ACCA publishing the texts we might not get that anymore. But hey, the study texts are free!

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The Editor says: Students' reaction to the Study Hub has been very positive. As one PQ said: “It’s absolutely amazing!” Another just said: “Amazing”. And those who have drilled down into the quizzes, flashcards and practice questions have been blown away. And, there are even comics, another PQ exclaimed. I think ACCA has created a fantastic new resource, which other bodies should be benchmarking themselves against.