CFOs seem to be on the right track with GenAI. Now it’s time to accelerate.
In the latest edition of its CFO Insights, Deloitte covers some valuable ground on how CFOs view and use Generative AI.
With the technology in its early stages and corporate finance officers learning on the fly, Deloitte offers some good advice on how to get the most out of GenAI rollouts with the least amount of risk.
Here’s a snapshot.
A massively expanding market. Deloitte estimates that in the next decade, GenAI “breakthroughs” should trigger global gross domestic product by 7%, or $7 trillion.
A product of two technology powerhouses. Deloitte notes that GenAI has soared to stratospheric heights due to a pair of revolutionary technologies – large language models and machine technology.
“Large language model (LLMs) algorithms that can analyze massive amounts of text, while machines provide mammoth computing power,” Deloitte states in the report. “While LLMs lack an innate understanding of words, they can predict the next most likely word in a sentence based on patterns they detect—misfiring as much as 27% of the time, according to recent research. Nevertheless, a GenAI chatbot passed the CPA exam.”
Finance leaders see “transformational” potential in GenAI. According to Deloitte, 94% of senior executives surveyed say they believe that AI is critical to their success strategy through 2028.
“GenAI and finance seem a natural fit, given that the former is powered by data and the latter draws upon abundant amounts of it,” the report states.
Start with smaller “pocket” projects. For CFOs just getting their feet wet with GenAI, starting with a pilot project is the way to go, Deloitte says.
“GenAI needs to be approached gingerly,” the report notes. “The technology requires vast amounts of data and serious processing power. Given the investment needed, CFOs may be wise to start with a small, targeted set of use cases aimed at delivering specific benefits.”
For example, that scenario could involve a company using existing internal data with data management frameworks already in place.
“Simply unleashing the capabilities of GenAI at full throttle can reveal various risks, only some of which—cybersecurity, data privacy, and regulatory compliance—are knowable in advance,” Deloitte says. “Indeed, it likely won’t be long before legislatures and other regulatory bodies pass rules governing the corporate use of GenAI.”
Brian O’Connell, a former Wall Street bond trader and best-selling author, is a prominent figure in the finance industry. With a substantial background as an ex-Wall Street trader, he has authored two best-selling books: ‘The 401k Millionaire’ and ‘CNBC’s Creating Wealth’, demonstrating his profound knowledge of finance and investing.
Brian is also a finance and business writer for esteemed national platforms and publications, including CNN, TheStreet.com, CBS News, The Wall Street Journal, U.S. News & World Report, Forbes, and Fox News.
