CFOs Harness Generative AI to Automate Routine Tasks and Drive Strategic Growth

Generative AI Revolutionizes Finance Function: CFOs Free Up Time for Strategic Work In a significant shift towards automation, chief financial officers (CFOs) are increasingly partnering with generative artificial intelligence (AI) to streamline mundane tasks and focus on high-value strategic work. According to Andrew W. Lo, Charles E. and Susan T. Harris professor and director of the Laboratory for Financial Engineering at the MIT Sloan School of Management, large language models (LLMs) and generative AI tools can support everyday finance tasks, freeing up capacity for more proactive financial strategy advising. As organizations navigate ongoing geopolitical and financial uncertainty, CFOs are leveraging generative AI to generate quarterly reports, communicate with investors, and formulate strategic summaries. "LLMs can't replace the CFO by any means," Lo emphasizes, "but they can take a lot of the drudgery out of the role by providing first drafts of documents that summarize key issues and outline strategic priorities." Background research suggests that generative AI has been gaining traction in finance, particularly in treasury functions. Use cases include cash, revenue, and liquidity forecasting, which can help mitigate financial risks. "Generative AI is not just a tool for automating tasks," notes Lo. "It's also an opportunity to rethink the role of finance professionals and how they contribute to business strategy." Industry experts point out that while generative AI holds promise, it also raises concerns about job displacement and data quality. "As with any new technology, there are risks associated with relying on AI-generated reports," warns a financial analyst who wished to remain anonymous. "However, the benefits of increased efficiency and accuracy can be substantial if implemented thoughtfully." Developments in generative AI continue to evolve rapidly, with recent breakthroughs in natural language processing (NLP) and computer vision. Researchers are exploring applications beyond finance, including healthcare and education. As Lo notes, "The potential for generative AI to transform industries is vast, but it requires careful consideration of the social implications." In conclusion, CFOs partnering with generative AI marks a significant step towards streamlining finance functions and freeing up capacity for strategic work. While challenges remain, the benefits of increased efficiency and accuracy make this partnership an exciting development in the world of finance. Sources: Andrew W. Lo, Charles E. and Susan T. Harris professor and director of the Laboratory for Financial Engineering at the MIT Sloan School of Management Deloitte report on generative AI in finance Note: This article is a sponsored content in association with Deloitte. *Reporting by Technologyreview.*