Embracing AI: The New Frontier in Finance
The integration of artificial intelligence into corporate finance is more than just a trend—it’s becoming a necessity. CFOs across various industries are dipping their toes into the waters of generative AI, using it for an array of tasks from drafting documents to transcribing meetings, ensuring that the era of manually taking notes is behind us. “Nobody does that anymore if you’ve got Copilot,” declares Kirstie Tiernan of BDO Digital, highlighting the efficiency brought by Microsoft’s AI assistants.
The use of AI tools extends beyond mundane tasks. Companies are utilizing these technologies for critical functions such as risk management. For instance, Tiernan has observed businesses employing AI to create materials for cybersecurity incident simulations. Moreover, platforms like Workiva are not only incorporating AI features but are also ensuring these tools are accessible and secure for finance teams. “Our approach has been to roll out capabilities for our customers to experiment, iterate, and realize the potential benefits,” shares Julie Iskow, CEO of Workiva.
The Practicality and Promise of AI in Finance
At the heart of New York, Amalgamated Bank’s experience with AI paints a picture of potential and precaution. Jason Darby, the bank’s CFO, leverages test AI for drafting internal documents—a move that saves time without compromising security. “It’s a safe yet powerful way to streamline our operations,” he explains.
The financial sector, known for its conservatism, is now recognizing AI’s potential to transform operations drastically. Ranjit Rao of Deloitte Consulting illustrates this shift, noting how finance teams can use AI to quickly respond to queries that would otherwise take days to process. “Imagine having a command prompt that can instantly provide answers to complex financial questions,” she suggests. This is not just about automation; it’s about enhancing decision-making and operational efficiency.
Software providers are capitalizing on this shift. Microsoft recently introduced a finance-specific version of its Copilot tool, designed to transform Excel data into comprehensive reports and assist with numerous data-related tasks. Similarly, Datarails’ FP&A Genius aims to not just automate tasks but also provide new insights, empowering CFOs to make more informed decisions. “We aim to enhance the intelligence of CFOs,” states Didi Gurfinkel, CEO of Datarails.
Yet, the road to AI integration is not without its challenges. A recent Deloitte survey found a significant concern among CFOs regarding the need for AI skills within their teams. As Rao points out, “The skill set required in finance is evolving—from traditional finance expertise to data science and prompt engineering.”
Conclusion: The AI Journey in Finance
As we witness the steady encroachment of test AI into finance, it’s clear that this technology offers both immense opportunities and challenges. For CFOs and their teams, the journey involves not just adopting new tools but also embracing a significant transformation in skill sets and operational mindsets. With the right approach, the potential of AI to revolutionize the financial sector is undeniable. What will your first step be on this transformative journey?
