AI measures business complexity
Peer-Reviewed Publication
Updates every hour. Last Updated: 14-Apr-2026 21:15 ET (15-Apr-2026 01:15 GMT/UTC)
Warren Buffett advised that you should never invest in a business you can’t understand. But that hasn’t stopped many investors.
New research from the McCombs School of Business at The University of Texas at Austin might help them better understand the complications of companies they’re investing in. The study offers the most precise and comprehensive tool yet for measuring business complexity.
The tool, devised by Sara Toynbee, associate professor of accounting, simplifies the measurement by using artificial intelligence. It also finds that in areas such as structuring debt, complexity can sometimes be a good thing.
Millions of Americans are living with dementia, and as investments in Alzheimer’s disease research reach record levels, The University of Texas at Arlington is helping ensure those advancements translate into real-world support for families on the front lines.