Finance Monthly - September 2023

and opportunities to drive growth they might otherwise miss. For example, a Generative AI model can identify a correlation between two seemingly unrelated factors that could significantly impact a company’s cash flow. 2. Risk management The ability to analyse real-time financial data affords finance teams the opportunity to better detect patterns and identify potential risks, which can be of great benefit in creating strategic risk models. In addition, Generative AI models can be used to automate many tasks that were previously done manually by human analysts. Instead of sifting through spreadsheets and reports, AI models can take on the brunt of the workload. This can save time and money for businesses. A Generative AI model could be used to automatically populate and generate reports based on real financial data or identify potential risks while ensuring the data is as accurate as possible. 3. Strategic planning ChatGPT and other Generative AI models can uncover growth opportunities while still underlining potential challenges. Once used with the relevant data, ChatGPT can generate strategic recommendations for finance professionals, helping to shape decisions about which direction would be most fruitful for operations. While there has been speculation that Generative AI could take over 300m jobs across major economies, a human touch is still very much needed in terms of using the insight for high-level decision making here. ChatGPT with Code Interpreter can also be used to analyse large amounts of financial data and generate reports that are easy to understand and interpret. They can also be used to identify potential risks and opportunities in financial markets, allowing leaders to make more informed investment decisions. CLOSING THOUGHTS Finance professionals have long valued precision and accuracy—and for good reason. Transpose one number incorrectly, and it could lead to serious repercussions for an organisation. As with any new technology, it’s critical to evaluate where ChatGPT fits within the responsibilities of a department. Consider where the tool will be able to streamline workflows and automate tasks, and make sure to set parameters around its use. Generative AI models are changing the face of finance in many ways. It is already helping finance leaders make better decisions, reduce the risk of human error, and automate many tasks that were previously done manually. As these models continue to evolve and improve, they are likely to play an increasingly important role in the future of finance. 33% Ori Pearl SVP of Engineering Tipalti of finance time is still being spent on manual processes – time which could be better spent on strategic initiatives that will contribute to growth. Finance Monthly. Financial Innovation & FinTech 89

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