Generative AI: The Future of Finance
Saleem Sufi
Dean & Director, MECA CFO Academy | Member, Advisory Council, Harvard Business Review | LinkedIn Advisor
The finance function is undergoing a transformative shift, primarily influenced by the integration of Gen AI tools and other technologies. These tools are set to redefine core finance processes, enabling more efficient operational workflows and strategic decision-making.
The implementation of Gen AI promises to enhance forecasting accuracy, risk management, and operational effectiveness, setting a new standard for businesses and professionals.
Why Generative AI is the Future
Generative AI stands out due to its ability to process and create complex text and numerical content, which augments traditional finance functions like drafting contracts and conducting detailed financial analyses.
As Gen AI technologies evolve, they are expected to work alongside current AI systems to offer comprehensive financial insights, forecast financial scenarios, and recommend strategic decisions.
This collaboration between generative and traditional AI is crucial for the future of finance, driving significant advancements in efficiency and quality of decision-making processes.
The Difference Between AI and Generative AI
Traditional AI in finance focuses primarily on numerical data analysis, used extensively for forecasting, risk assessment, and other quantitative tasks.
In contrast, Generative AI specializes in generating human-like text and performing initial data analyses, which includes drafting documents and processing complex information.
While traditional AI excels in tasks that require precision and repetitive processing, Generative AI introduces versatility in handling diverse data formats and generating coherent narratives, essential for strategic planning and communication.
Boston Consulting Group recently published an article where they described the different use cases in Finance based on traditional AI and Generative AI:
A few more common and specific use cases that may take care of the bulk of work in typical Finance functions are listed below:
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5 Steps to Rescue You from Lagging Behind
While most of the leading companies are moving forward with digital transformation at lightning speed, a large number of organizations and their CFOs remain ignorant of this critical change and are significantly lagging behind.
If you happen to be in such companies, do not become a victim of getting left behind. Your career is your responsibility, not your employer’s. This is the time to take matters into your own hands.
Don’t wait for your employer to offer the necessary training and prepare you for the future. The best they would do when the time comes is to fire you and hire trained employees who could do the job.
To rescue yourself from lagging behind, at a minimum, you must do the following and do it Now:
1.???? Jumpstart using ChatGPT or other Gen AI tools. Even if your employer has not provided any clear guidelines about the use of Gen AI tools, use them in your own time on your own devices. If you do not do it now, it may become a little too late.
2.???? Attend an online course on ‘Prompt Engineering’. There are many short courses available that are completely free and you can learn the basics in a few hours.
3.???? Look at the above use cases and look at your own job contents. See where you can use the ChatGPT or similar tools to save time and improve your productivity. Just a caution; these tools are still not perfect. You must double-check any output you get from these tools before using it further.
4.???? Utilize your time saved by using these tools in tasks that require higher cognitive skills, e.g. strategic thinking, creativity, and complex problem-solving. Collaborate with other like-minded professionals who are on a similar learning path. If they are from the same workplace, even better. Learn from each other.
5.???? Join a formal 6-12 month training/ coaching program that will help you transform from a traditional Accounting and Finance professional into a Digital Finance talent. This will require you to integrate your technology skills with your business insight and leadership skills.
Future is full of challenges and opportunities. Whether you will face more challenges or more opportunities, it all depends on how prepared you are.**
P.S. The enrollment in the 17th batch of the Strategic CFO Program is closing soon. This is the last week to save $1140 by using the Earlybird pricing. Check Program Details here.
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Marketing Executive at TextMine
4 个月AI is here to empower leaders, to help them make better informed decisions, leveraging data and insights that might otherwise be overlooked - not to replace them!???? We're hosting a webinar next week covering this, it would be great if you could join!?Secure your spot by signing up through the Zoom link on the event page: https://www.dhirubhai.net/events/aipowereddocumentdataextraction7189578635241029632
Top 50 CFO KSA 2024 | Strategic Finance Leader | Results Driven CFO | Leading Finance Transformation
5 个月Generative AI is the game changer for all professions Saleem Sufi.
Director at xpertsleague
5 个月Absolutely, Saleem Sufi , the rise of Generative AI (Gen AI) is revolutionizing finance. Gen AI automates tasks, creates complex financial reports, and offers deeper insights from data, making finance teams more efficient and strategic.
Internal Audit Specialist | Managing Financial & Operational Audits @ Oil and Gas Entity | Governance, Risk Management & Control.
5 个月Saleem Sufi As an internal audit and risk manager, I'm seeing Gen AI tools revolutionize finance. They're streamlining processes, enhancing decision-making, and boosting our risk management effectiveness.
Founder and CEO: Analytics-Based Performance Management LLC; Expert in ABC, EPM/CPM, Profit Analysis, Budget, Analytics
5 个月Saleem ... Thank you for your article. Well written and informative.