Introduction to Generative AI in Finance
Generative AI is showing great promise in various financial functions, including treasury. It can be used for cash, revenue, and liquidity forecasting and management, as well as automating contracts and investment analysis. However, there are still challenges to overcome due to the mathematical limitations of Large Language Models (LLMs). Despite these challenges, many finance organizations are already adopting generative AI. According to Deloitte’s 2024 State of Generative AI in the Enterprise survey, one-fifth of finance organizations have already adopted generative AI in the finance function.
Current State of Generative AI in Finance
The return on generative AI investments in finance functions has been 8 points below expectations so far for surveyed organizations. However, some finance departments are moving ahead with investments. Deloitte’s fourth-quarter 2024 North American CFO Signals survey found that 46% of CFOs expect deployment or spend on generative AI in finance to increase in the next 12 months. The top benefits of generative AI in finance include its potential to help control costs through self-service and automation, and free up workers for higher-level, higher-productivity tasks.
Benefits of Generative AI in Finance
Robyn Peters, principal in finance transformation at Deloitte Consulting LLP, notes that companies have used AI on the customer-facing side for a long time, but in finance, employees are still creating documents and presentations and emailing them around. Generative AI can help automate these tasks and provide a more human-centric experience for finance professionals. Peters believes that there is no reason why finance organizations cannot provide the same level of experience as customer-facing brands, and that AI makes it easier to do so.
Future of Generative AI in Finance
If CFOs think they can just sit by for the next five years and watch how AI evolves, they may lose out to more nimble competitors that are actively experimenting in the space. Future finance professionals are growing up using generative AI tools, and CFOs should consider reimagining what it looks like to be a successful finance professional, in collaboration with AI. This requires a proactive approach to adopting and implementing generative AI in finance functions.
Conclusion
In conclusion, generative AI has the potential to revolutionize various financial functions, including treasury. While there are still challenges to overcome, many finance organizations are already adopting generative AI. As the technology continues to evolve, CFOs should consider reimagining what it looks like to be a successful finance professional, in collaboration with AI. By doing so, they can stay ahead of the competition and provide a more human-centric experience for finance professionals.
FAQs
Q: What is generative AI, and how is it used in finance?
A: Generative AI is a type of artificial intelligence that can generate text, images, and other data. In finance, it can be used for cash, revenue, and liquidity forecasting and management, as well as automating contracts and investment analysis.
Q: What are the benefits of generative AI in finance?
A: The benefits of generative AI in finance include its potential to help control costs through self-service and automation, and free up workers for higher-level, higher-productivity tasks.
Q: How many finance organizations have already adopted generative AI?
A: According to Deloitte’s 2024 State of Generative AI in the Enterprise survey, one-fifth of finance organizations have already adopted generative AI in the finance function.
Q: What is the future of generative AI in finance?
A: The future of generative AI in finance is expected to be significant, with many CFOs expecting deployment or spend on generative AI in finance to increase in the next 12 months. Future finance professionals are growing up using generative AI tools, and CFOs should consider reimagining what it looks like to be a successful finance professional, in collaboration with AI.
