Innovative And Practical Generative AI Use Cases In Finance
by Jan Hendrik Fleury on Nov 13, 2023 1:54:51 PM
In 2024, the transformative power of Generative AI in finance is poised to redefine how financial controllers operate. As a financial controller, leveraging Generative AI not only enhances efficiency but also opens doors to novel possibilities, allowing you to navigate complex tasks seamlessly, even without coding expertise.
How can Generative AI transform finance in 2024?
As a financial controller, you can use Generative AI to perform your work better and faster. You may even be experimenting already.
For those who are new to Generative AI: by giving text commands (prompting), you give instructions on what you want to achieve. This instruction takes place on all conceivable formats and sources such as spreadsheets, PDFs, databases, all without knowledge of code such as SQL.
An example of a prompt is: 'as a financial controller, give me an analysis of why the occupancy rate in quarter 3 of 2023 lags behind the occupancy rate of quarter 3 of 2022'. You can then ask follow-up questions. You can also have the answer displayed in a crosstab using a prompt.
Generative AI Use Cases in Finance
To help you use Generative Artificial Intelligence smartly and responsibly, I will share experiences and knowledge with you every week in a blog series on FM.nl.
1. Financial and management reporting
Generative AI has the potential to revolutionize the way financial and management reporting is handled. This technology can autonomously produce essential documents like balance sheets, profit and loss statements, and cash flow statements. The result? Financial controllers can redirect their focus towards strategic decision-making.
2. Contract and document review
Incorporating Generative AI into financial workflows enables a more thorough review of contracts and legal documents. It swiftly identifies potential risks and compliance issues, empowering financial controllers to proactively manage and mitigate problems.
3. Policy Interpretation
Navigating complex financial policies and regulations becomes more accessible with Generative AI tools. Financial controllers can ensure their organization complies with all applicable regulations, reducing the risk of costly violations.
4. Coding assistance
Generative AI assists with coding tasks, and streamlining activities like code writing and debugging in spreadsheets or SQL. This leads to increased efficiency and precision in developing and maintaining financial systems.
5. Explanation of forecast and budget variance
Generative AI tools clarify the often-confounding variations between forecasts and actual results. This allows financial controllers to pinpoint the root causes of issues and implement corrective measures promptly.
6. Efficiency and accuracy
Incorporating new technology, such as Generative AI, offers immense potential to elevate the finance function by leveraging its advanced AI capabilities. Beyond the specific cases mentioned earlier, Generative AI can profoundly impact the efficiency and accuracy of numerous routine tasks performed by financial controllers:
Generative AI brings about a paradigm shift in data entry processes. By automating the laborious task of entering data into financial systems, including accounting software and ERP systems, it not only reduces the occurrence of errors but also streamlines the entire financial reporting process.
Generative AI empowers financial controllers to delve into vast datasets with precision and efficiency. It equips them to identify critical trends and patterns, enabling data-driven insights that inform better financial decisions.
Generative AI, with its AI capabilities, redefines risk assessment within the finance function. It provides a more effective means of evaluating financial risks and crafting robust mitigation strategies, bolstering an organization's resilience against potential financial losses. The outcome enables the finance team to operate with heightened efficiency and unparalleled accuracy, setting the stage for more agile and informed financial decision-making processes.
7. Personalized financial reports
In the world of financial services, a prominent company relies on GenAI to craft customized financial reports for clients. These reports offer invaluable insights into spending habits, investment performance, and asset allocation, enhancing client engagement.
8. Automate reviewing process
A manufacturing firm has successfully streamlined its contract review process, effectively halving the time required for these crucial legal document assessments.
9. Predict Sales and Inventory
A forward-thinking retail company uses GenAI to forecast sales and manage inventory levels, leading to reduced inventory holdouts and an overall boost in profitability.
What must CFOs prepare for?
Finance leaders, in their roles as CFOs, are at the forefront of preparing their finance teams for the challenges and opportunities presented by the integration of generative AI in finance.
As the financial stewards of organizations, these CFOs must navigate a dynamic business environment marked by rapid technological advancements, increasing regulatory complexities, economic uncertainties, and the growing demand for data-driven decision-making.
Also, they need to anticipate and address the risks associated with cybersecurity threats and disruptions, as exemplified by the recent global health crisis. To truly excel, CFOs must ensure that their teams are equipped not only with sound financial management practices but also with the ability to adapt and innovate.
This approach is crucial in ensuring that their organizations remain agile and resilient in the face of change, ultimately safeguarding financial stability and driving sustainable growth through the integration of AI models and gen AI in finance.
Gen AI is poised to revolutionize the financial services industry in 2024. This powerful technology can automate repetitive tasks, improve accuracy, and provide insights that were previously impossible to obtain. Finance professionals who embrace Generative AI will be at the forefront of innovation and well-positioned for success in the years to come.
If you want to use Generative AI but don't know where to begin, join our Generative AI Workshop. It will give you the knowledge and skills to understand and use Generative AI effectively. Don't miss the chance to stay ahead and succeed in the changing world of finance.
Crystalloids helps companies improve their customer experiences and build marketing technology. Founded in 2006 in the Netherlands, Crystalloids builds crystal-clear solutions that turn customer data into information and knowledge into wisdom. As a leading Google Cloud Partner, Crystalloids combines experience in software development, data science, and marketing, making them one of a kind IT company. Using the Agile approach, Crystalloids ensures that use cases show immediate value to their clients and make their job focus more on decision making and less on programming.
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