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- Artificial Intelligence: It may seem overhyped but AI’s use cases are becoming increasingly evident across various business functions including tax, accounting, and auditing.
- And some are speculating that consulting will be fully overtaken by AI.
- At The Finance Story Bangalore event, Raghav Swaminathan, CFO of Wipro Enterprises was asked where he sees the finance community heading and why everyone is getting freaked out over AI.
Rapid generation of AI use cases in Finance
Raghav sarcastically says, “I have a prediction that we will all be finally pets to machines, in the next 20, 30 years.”
You know, my personal view is the impact of AI will be profound, in a decade on the finance community.
We don’t know whether we will be pets to machines or not but for now, we are certainly going to have to work in tandem for efficiency and the best outcome.
AI technology is advancing at an unprecedented pace, with significant technological changes occurring approximately every six months.
This rapid development is leading to an ever-increasing number of use cases, making AI integration more feasible and impactful across different sectors.
New use cases are being developed rapidly including, risk assessment, risk management, fraud detection, management and prevention, and more.
Usage of automation will increase
Raghav remarked, “We will clearly see way more automation than we are seeing today.”
The future promises an unprecedented level of automation, with predictions suggesting that within 20 to 30 years, automation will be far more pervasive than it is today.
For example, about a decade ago China wasn’t this technologically advanced, now they consume more than 60-65% of the world’s robots, highlighting the rapid pace of automation adoption.
And this will catch up to India as well. It’s just a matter of time.
Also read: Future of AI is India: Why finance professionals in India must prioritize upskilling
Fundamental changes in operations
As AI becomes more integrated into various domains, it will revolutionize how operations are conducted.
This transformation will not be limited to one industry but will permeate across all sectors, fundamentally altering traditional business practices.
Standardization and simplification
For the finance community, AI will lead to the standardization and simplification of many processes.
Raghav emphasizes that financial professionals will need to align closely with business operations to leverage AI’s potential fully.
Cost reduction
Initially, automation driven by AI will primarily focus on cost reduction. This trend will persist across most industries, with technology being leveraged to streamline operations and reduce expenses.
Revenue generation
While cost reduction will be a primary focus, there is also a need to develop AI use cases that drive revenue generation.
In industries like FMCG, technology interventions can optimize sales processes, target specific markets, and enhance product offerings.
Raghav noted, “From a function standpoint, automation will drive cost reduction out, but you have to build a lot more use cases on the revenue generation side.”
Big 4 investing in AI
The Big 4 firms – Deloitte, KPMG, PwC, and EY – are making substantial commitments to artificial intelligence. They are collectively pouring more than $4 billion into AI technologies.
For instance, on May 29, PwC announced its partnership with OpenAI, becoming the largest customer and first reseller of ChatGPT Enterprise as part of the new deal.
This partnership is part of PwC’s massive $1 billion investment in generative AI for its US operations over the next three years.
PwC is rolling out ChatGPT Enterprise to 100,000 UK & US employees, with 75,000 in the US alone.
How do you upskill yourself?
Develop a business mindset: Raghav emphasized, “The advantage I see for someone who understands finance is their high ability to understand business.”
Finance professionals possess a unique advantage due to their deep understanding of business dynamics, return on investment, and financial intricacies.
This expertise will be crucial as AI continues to disrupt business functions and processes.
Learn prompting: Don’t be of the mindset that unless you go to a university and get a certificate, you can’t be skilled in AI.
That is not entirely true.
There is a lot of content available to learn about AI, but it requires time.
Firstly, visit ChatGPT and type that you are a finance professional interested in learning about Gen AI’s impact on finance. You’ll receive 6 pointers to guide you toward relevant YouTube videos, LinkedIn certifications, or Coursera courses.
Also being skilled at prompting is crucial.
But these are just the basic steps. As you go along, your upskilling in AI will have to evolve as the domain of AI itself is evolving at a phenomenal pace.
Wrapping up
The future of finance is AI, and the professionals who embrace it will be the ones shaping it.
By upskilling and adapting, you can remain at the forefront of this exciting new frontier.
The choice is clear: adapt or be disrupted.
