Generative AI: Value Protection and Creation

If traditional AI had a moment in 2022, generative AI (aka GenAI) kicked down the door in 2023. Traditional AI solves tasks within predefined rules but GenAI purports to create content. Google launched both “Bard” in March, and “AI Snapshot” in May. Courtesy of GenAI, the Beatles had a back-to-the-future moment with the release of “Now and Then.” Hollywood went on strike, partly in protest of GenAI’s threats to creativity and license. Along the way, big questions were also asked about GenAI’s inherent bias.

GenAI and the Future of Finance

It’s no surprise that the data-rich environment of finance is a playground for AI applications, with 80% of CFOs investing more dollars into AI. The optimists among us say that GenAI will offer powerful options in value protection (e.g., internal audit, risk management, and regulatory compliance) and value creation (e.g., predict customer behavior, create more accurate forecasts, and improve scenario modeling). For now, such activity will remain at human behest, comforting words for the 50% of us that don’t trust GenAI. It remains our job to engineer high-quality prompts, detect bias, identify the “hallucinations,” and inspire and sustain the teams to guide the work. If you’re new to GenAI, start with a sound strategy and controlled use cases with well-governed and accessible data. Your baby steps with GenAI could help raise the global GPD by 7% in the next decade. Buckle up, buttercup.

“AI is not going to replace CFOs. But CFOs who use AI will replace those who don’t.”
– Erik Brynjolfsson, Senior Fellow, Stanford University, Institute for Human-Centered AI