The implications of generative AI in Finance has been saved
Perspectives
The implications of generative AI in Finance
A new frontier in artificial intelligence and for Finance
By the end of 2022, generative artificial intelligence (AI) had fully sparked public imagination about the future. Consumers and enterprises alike have been using artificial intelligence for years: speaking to voice assistants like Siri or Alexa, automating routine tasks, using algorithms to recognize patterns and correlations in data. But applications that could produce original text or digital art that quickly became household names, heralded a new age where AI can mimic human creative processes.
How much will generative AI impact our lives? That remains to be seen; however, research has suggested that breakthroughs in generative AI could increase global GDP by 7%—nearly $7 trillion—and boost productivity growth by 1.5 percentage points.1
Generative AI might start by producing concise and coherent summaries of text (e.g., meeting minutes), converting existing content to new modes (e.g., text to visual charts), or generating impact analyses from, say, new regulations. Producing novel content represents a definitive shift in the capabilities of AI, moving it from an enabler of our work to a potential co-pilot. It might augment human capability and then advance it.
CFOs and Finance leaders should start to develop strategies today for how generative AI will affect both their functions and their businesses tomorrow.
What does this mean for Finance?
A lot. Generative AI is powered by data. And since Finance draws upon enormous amounts of data, it’s a natural fit to take advantage of generative AI.
Here we consider areas within Finance primed for generative AI-enabled transformation:
Generative AI has the potential to transform Finance, and business, as we know it. It will take upfront investment in time and money. According to a Gartner study, 80% of CFOs surveyed in 2022 expected to spend more on AI in the coming two years.2 With that investment, however, around two-thirds think their function will reach an autonomous state within six years.
To make sound decisions, it will be crucial that leaders consider the use of generative AI from an enterprise-wide approach with a clear understanding of where this technology will have an impact on operating expenditures, capital expenditures, market capitalization, and a lot more. CFOs and Finance leaders can play a pivotal role in driving strategic collaboration among key C-suite leaders to enable greater success—and return on investment—of AI deployment and adoption. The journey should begin with a sound strategy and a few use cases to test and learn with well-governed and accessible data. It doesn’t have to be perfect, but it should be controlled.
While the future looks promising, generative AI has some current limitations that Finance professionals should consider.
Generative AI has quickly cemented its foothold in the public consciousness. It has sparked excitement around productivity increases and cost savings but also warrants caution.
Yet, generative AI may completely transform the Finance function. Leading organizations have launched pilot programs and are scaling fast.
In the short term, generative AI will allow for further automation of financial analysis and reporting, enhancement of risk mitigation efforts, and optimization of financial operations. The impact is unlikely to stop there, though. With its ability to process vast amounts of data and quickly produce novel content, generative AI holds a promise for progressive disruptions we cannot yet anticipate.
Generative AI is here, and it’s adapting and learning.
CFOs and Finance executives who adapt and learn with it can lead the future.
Ready to discuss generative AI in Finance? Contact us to learn more.
| Gina Schaefer Managing Director, Analytics and Cognitive Deloitte Consulting LLP +1.404.631.2326 gschaefer@deloitte.com |
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Christine Ahn Principal, Finance and Performance Deloitte Consulting LLP +1.213.553.1691 chrisahn@deloitte.com |
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James Glover Principal, Finance and Performance Deloitte Consulting LLP +1.212.313.1916 jglover@deloitte.com |
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| Robyn Peters Senior Manager, Finance and Performance Deloitte Consulting LLP +1.214.840.1475 robynpeters@deloitte.com |
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Ranjit Rao Principal, Finance and Performance Deloitte Consulting LLP +1.404.631.3661 ranjrao@deloitte.com |
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Cameron Andriola Senior Manager, Controllership Transformation Deloitte & Touche LLP +1.702.893.5148 candriola@deloitte.com |
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| Court Watson Partner, Controllership Transformation Deloitte & Touche LLP +1.206.716.7082 cowatson@deloitte.com |
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Geoff Kovesdy Principal, Internal Audit Deloitte & Touche LLP +1.212.436.5149 gkovesdy@deloitte.com |
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Prashant Patri Principal, Treasury Deloitte & Touche LLP +1.212.436.7568 prpatri@deloitte.com |
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| RJ Littleton Partner, Tax Deloitte Tax LLP +1.214.840.1781 rilittleton@deloitte.com |
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Mark Gustafson Senior Manager, Human Capital Deloitte Consulting LLP +1.213.688.4101 margustafson@deloitte.com |
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Arjun Krishnamurthy Managing Director, SAP Head of AIOPS.D™ Autonomous Finance Deloitte Consulting LLP +1.404.942.6967 arkrishnamurthy@deloitte.com |
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| Sonal Sood Senior Manager, Oracle Deloitte Consulting LLP +1.312.486.5096 ssood@deloitte.com |
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Endnotes
- 1 Goldman Sachs, “Generative AI could raise global GDP by 7%,” April 5, 2023.
- 2 Gartner, “Gartner predicts three ways autonomous technologies will impact the FP&A and Controller functions in Finance,” press release, March 1, 2023.
- 3 Andrew Laningham, “What’s missing in the conversation about generative AI and jobs,” The Harris Poll, February 6, 2023.
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