Generative artificial intelligence constitutes a revolutionary advancement in how data is collected and interpreted, being able to generate personalised, original output in relation to the request that is directed to it.
The disruptive impact such technology will have on the financial sector is evident, as the behaviour of investors will change as a result of the ever-increasing use of the technology and all the tools that are being built — and will continue to be built — on it.
The advantages are evident. By being able to not only gain access to virtually all the information available online at lightning speed, but to also have it structured in a format that adheres to the particular request of any single user, investors can gather the information they need to make investment decisions.
They can even obtain a complete investment plan, which might include an indication of the assets to be included and their weighting in the portfolio.
Furthermore, the investor will have access to all of the above for a fraction of the cost linked to professional analysis and advice, dramatically widening the reach to those whose wealth did not justify bearing the costs of professional advice.
Even more wealthy and sophisticated investors might migrate to new tools based on generative AI.
Forecasts have already been made with regards to the impact it will have on employment in the financial services space. And they are dramatic.
This is interesting, but the fact that generative AI can be autonomously used by investors without guidance generates a number of risks that we must be aware of to use it appropriately.
First of all, to properly formulate our queries to the system, obtain relevant and reliable results and, ultimately, be able to interpret the results, we need to know what we are talking about in the first place.
The relevance, reliability and effectiveness of generative AI is directly correlated with the level of accuracy and detail of the request that is fed to the system.
General queries about the investment process or about a certain part of it will return very general results, which might not be in line with the investor’s real needs.
To correctly execute the above, besides understanding the dynamics and components of the investment process, we must be able to identify and quantify the basic elements that allow a proper financial planning of our own assets.
We need to evaluate our actual and future financial flows, identify our investment goals and risk tolerance.
Delegating such assessment to a third party, generative AI in this case, might be potentially harmful and lead to serious disappointment in the investment process outcomes.
The system itself warns about such risks and advises users to seek professional advice.
Professional advice is, therefore, not pushed (at least not completely) out of the door.
For all the instances involving insufficient knowledge of financial matters and terminology, time constraints or complexities in the level of the wealth to be analysed (which could bring in tax implications, overlapping with professional or corporate involvement, particular needs of wealth protection, et cetera), the guidance of an expert will still be needed.
This is where one can offset the impact of AI on financial services employment — by embracing a holistic approach to wealth management, refraining from resisting this new technology and, instead, embracing and harnessing its power.
We also must have awareness of unforeseen events that might radically change the scenario that we used to build our investment portfolio.
Black swan events are unpredictable, both in terms of timing and magnitude of their impact.
The very characteristics of such events do not allow us to identify a relevant and homogenous set of data on which to perform statistical analysis, recognise patterns, learn from the past and meaningfully reduce the risk of unpredictable and disappointing outcomes for our investment portfolio.
It is evident that generative AI can be extremely helpful in researching the single components of an investment portfolio, calculating the optimal weight within the portfolio, as well as analysing returns, volatility and possible outcomes based on different scenarios.
These are all features that were reserved for the most advanced research teams within investment banks and hedge funds but will be soon at the disposal of every one of us.
Exciting indeed, but we always need to be aware of the process and avoid excessively relying on technology. This is a basic risk management rule that is disregarded way too often.
Roberto d’Ambrosio is the chief executive of Axiory Global
UAE SQUAD
UAE team
1. Chris Jones-Griffiths 2. Gio Fourie 3. Craig Nutt 4. Daniel Perry 5. Isaac Porter 6. Matt Mills 7. Hamish Anderson 8. Jaen Botes 9. Barry Dwyer 10. Luke Stevenson (captain) 11. Sean Carey 12. Andrew Powell 13. Saki Naisau 14. Thinus Steyn 15. Matt Richards
Replacements
16. Lukas Waddington 17. Murray Reason 18. Ahmed Moosa 19. Stephen Ferguson 20. Sean Stevens 21. Ed Armitage 22. Kini Natuna 23. Majid Al Balooshi
House-hunting
Top 10 locations for inquiries from US house hunters, according to Rightmove
- Edinburgh, Scotland
- Westminster, London
- Camden, London
- Glasgow, Scotland
- Islington, London
- Kensington and Chelsea, London
- Highlands, Scotland
- Argyll and Bute, Scotland
- Fife, Scotland
- Tower Hamlets, London
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UAE currency: the story behind the money in your pockets
UAE v Gibraltar
What: International friendly
When: 7pm kick off
Where: Rugby Park, Dubai Sports City
Admission: Free
Online: The match will be broadcast live on Dubai Exiles’ Facebook page
UAE squad: Lucas Waddington (Dubai Exiles), Gio Fourie (Exiles), Craig Nutt (Abu Dhabi Harlequins), Phil Brady (Harlequins), Daniel Perry (Dubai Hurricanes), Esekaia Dranibota (Harlequins), Matt Mills (Exiles), Jaen Botes (Exiles), Kristian Stinson (Exiles), Murray Reason (Abu Dhabi Saracens), Dave Knight (Hurricanes), Ross Samson (Jebel Ali Dragons), DuRandt Gerber (Exiles), Saki Naisau (Dragons), Andrew Powell (Hurricanes), Emosi Vacanau (Harlequins), Niko Volavola (Dragons), Matt Richards (Dragons), Luke Stevenson (Harlequins), Josh Ives (Dubai Sports City Eagles), Sean Stevens (Saracens), Thinus Steyn (Exiles)
ESSENTIALS
The flights
Emirates flies from Dubai to Phnom Penh via Yangon from Dh2,700 return including taxes. Cambodia Bayon Airlines and Cambodia Angkor Air offer return flights from Phnom Penh to Siem Reap from Dh250 return including taxes. The flight takes about 45 minutes.
The hotels
Rooms at the Raffles Le Royal in Phnom Penh cost from $225 (Dh826) per night including taxes. Rooms at the Grand Hotel d'Angkor cost from $261 (Dh960) per night including taxes.
The tours
A cyclo architecture tour of Phnom Penh costs from $20 (Dh75) per person for about three hours, with Khmer Architecture Tours. Tailor-made tours of all of Cambodia, or sites like Angkor alone, can be arranged by About Asia Travel. Emirates Holidays also offers packages.
How do Sim card scams work?
Sim swap frauds are a form of identity theft.
They involve criminals conning mobile phone operators into issuing them with replacement Sim cards by claiming to be the victim, often pretending their phone has been lost or stolen in order to secure a new Sim.
They use the victim's personal details - obtained through criminal methods - to convince such companies of their identity.
The criminal can then access any online service that requires security codes to be sent to a user's mobile phone, such as banking services.
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
Brief scores:
Barcelona 3
Pique 38', Messi 51 (pen), Suarez 82'
Rayo Vallecano 1
De Tomas Gomez 24'
The more serious side of specialty coffee
While the taste of beans and freshness of roast is paramount to the specialty coffee scene, so is sustainability and workers’ rights.
The bulk of genuine specialty coffee companies aim to improve on these elements in every stage of production via direct relationships with farmers. For instance, Mokha 1450 on Al Wasl Road strives to work predominantly with women-owned and -operated coffee organisations, including female farmers in the Sabree mountains of Yemen.
Because, as the boutique’s owner, Garfield Kerr, points out: “women represent over 90 per cent of the coffee value chain, but are woefully underrepresented in less than 10 per cent of ownership and management throughout the global coffee industry.”
One of the UAE’s largest suppliers of green (meaning not-yet-roasted) beans, Raw Coffee, is a founding member of the Partnership of Gender Equity, which aims to empower female coffee farmers and harvesters.
Also, globally, many companies have found the perfect way to recycle old coffee grounds: they create the perfect fertile soil in which to grow mushrooms.
School counsellors on mental well-being
Schools counsellors in Abu Dhabi have put a number of provisions in place to help support pupils returning to the classroom next week.
Many children will resume in-person lessons for the first time in 10 months and parents previously raised concerns about the long-term effects of distance learning.
Schools leaders and counsellors said extra support will be offered to anyone that needs it. Additionally, heads of years will be on hand to offer advice or coping mechanisms to ease any concerns.
“Anxiety this time round has really spiralled, more so than from the first lockdown at the beginning of the pandemic,” said Priya Mitchell, counsellor at The British School Al Khubairat in Abu Dhabi.
“Some have got used to being at home don’t want to go back, while others are desperate to get back.
“We have seen an increase in depressive symptoms, especially with older pupils, and self-harm is starting younger.
“It is worrying and has taught us how important it is that we prioritise mental well-being.”
Ms Mitchell said she was liaising more with heads of year so they can support and offer advice to pupils if the demand is there.
The school will also carry out mental well-being checks so they can pick up on any behavioural patterns and put interventions in place to help pupils.
At Raha International School, the well-being team has provided parents with assessment surveys to see how they can support students at home to transition back to school.
“They have created a Well-being Resource Bank that parents have access to on information on various domains of mental health for students and families,” a team member said.
“Our pastoral team have been working with students to help ease the transition and reduce anxiety that [pupils] may experience after some have been nearly a year off campus.
"Special secondary tutorial classes have also focused on preparing students for their return; going over new guidelines, expectations and daily schedules.”
A State of Passion
Directors: Carol Mansour and Muna Khalidi
Stars: Dr Ghassan Abu-Sittah
Rating: 4/5
It Was Just an Accident
Director: Jafar Panahi
Stars: Vahid Mobasseri, Mariam Afshari, Ebrahim Azizi, Hadis Pakbaten, Majid Panahi, Mohamad Ali Elyasmehr
Rating: 4/5
UAE currency: the story behind the money in your pockets
Mobile phone packages comparison
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- Engine: 3.9-litre twin-turbo V8
- Power: 640hp
- Torque: 760nm
- On sale: 2026
- Price: Not announced yet
Ferrari 12Cilindri specs
Engine: naturally aspirated 6.5-liter V12
Power: 819hp
Torque: 678Nm at 7,250rpm
Price: From Dh1,700,000
Available: Now
