Making the business case for generative AI

This approach makes MPC increasingly viable for AI-based finance, enhancing both security and regulatory compliance. You can foun additiona information about ai customer service and artificial intelligence and NLP. As AI agents gain ground in the world of finance, finding the right balance between autonomy and control is critical. Crypto wallets provide a viable foundation for AI-based finance, but effective key management remains a challenge. Solutions like multi-signature wallets, TEEs, and MPC each offer distinct advantages, and a layered approach using multiple solutions may ultimately prove most effective. AI agents—autonomous systems designed to make decisions, perform tasks, and interact within digital environments—are increasingly seen as transformative for various industries, including finance. These agents operate independently, following pre-set goals or adapting dynamically, and hold promise in roles ranging from customer service to fund management.

From online banking systems to investment accounts, each financial service is built on the assumption that there’s an accountable, legally recognized human or corporate entity behind every transaction. An AI agent operating independently doesn’t easily fit into these frameworks, making compliance both technically challenging and legally uncertain. Thus, for AI-driven finance to work on a practical level, a solution that sidesteps the limitations of traditional finance while addressing security and regulatory concerns is necessary. Emphasizing the role of AI in mitigating risks is crucial, as it can help address challenges like cybersecurity threats, fraud and supply chain disruptions. AI-powered risk management solutions are proactive, enabling businesses to stay ahead of potential issues. Demonstrate how, by leveraging AI, organizations can identify and address risks early, preventing them from escalating into more serious problems.

An Executive’s Crash Course In AI Agents

AI agents are going to be big, and leaders need to begin strategizing now about how to incorporate … For business downstream from these technology providers, however, quantifying the capabilities of generative AI into bottom-line figures has proved more elusive. According to 49% of respondents to a Gartner survey, estimating and realizing business value is the number-one barrier to generative AI adoption. ChatGPT Meanwhile, GFTN will launch in 2025 its first forum dedicated to fostering innovation and investment in climate tech, and sustainability solutions for the financial sector. SINGAPORE – Artificial intelligence (AI) presents huge benefits for the financial sector but risks need to be managed so that its potential can be harnessed safely, said former chief central banker Ravi Menon on Nov 6.

AI has been deployed in financial services through the likes of deep-learning models that analyse multiple layers of complex data to train sophisticated artificial neural networks. We’ve seen financial services firms fined billions by the SEC around lack of archival of off-channel communications, e.g. the use of WhatsApp and WeChat – but does that mean firms are now required to archive conversations with AI bots? Wealth and investment
managers also must manage concerns around AI hallucinations and the impact that has both on the research and trading process.

Join the Community

Leaders need to act now to begin strategizing how to use this powerful technology to transform their organizations and capture AI ROI. How do I minimize security risks when handing over entire processes to AI? Agents that try to be all things to all people tend to fail spectacularly.

“Innovation is happening faster than you can imagine or adapt to, and large organizations are racing against time to move from data to value to insights to action,” notes Abhas Ricky, chief strategy officer at Cloudera, a hybrid data platform. Let’s consider an AI-powered security solution that can detect and respond to cyberattacks in real time. Senior executives, especially those in ChatGPT App business units or with skill sets outside of cybersecurity, might not understand AI’s critical role in security teams. Emphasize the financial benefits of AI, including its potential to drive increased revenue, reduce costs and enhance operational efficiency. To strengthen the case, it’s essential to quantify the ROI of AI initiatives by using concrete data and performance metrics.

Flexible data architecture enables the seamless connection of data and systems that don’t easily connect (e.g., on-premises and cloud deployments). This is critical not only for adding new genAI tools to your technology stack, but also for accessing and combining data from a diverse range of inputs. This coordination can significantly lower the total cost of ownership of AI tools, speed up the development process, and provide the ability to scale. Modern organizations manage mountains of data from a variety of disparate applications (CRM, ERP, etc.) and data sources (web servers, databases, APIs, etc.). Centralizing this information is critical to controlling how it flows, how it’s transformed, and how to keep it secure. The generative AI application allowed the finance department to reduce the time spent on month-end closing by 30% and decrease manual data review and reconciliation by 90%.

Our implementation plan at the Association of International Certified Professional Accountants has three key phases. Phase 1 is the Initial Foundation, focused on creating our “AI ambition” and vision for both our organization and our members and developing AI use policies and data governance. This involves establishing use cases and pilots using private instances of GenAI tools. In this stage, we identify revenue-generating AI applications and innovative customer experiences and incorporate AI into our strategic plan. Finance leaders need to be clear about what role they expect AI to play and outline desired outcomes, such as streamlining processes, especially as the demand for finance business partnering support and data continues to increase. That vision should not focus on AI as a tool to replace essential finance professionals but rather as a mechanism to enhance and augment their role in creating value.

Finally, as with any change management project, finance leaders will know that open and transparent communication is essential to create and maintain trust. But leaders can instead choose to position the technology as a tool for accelerating market growth or super augmenting your most valuable asset—your people. But it will also create new opportunities—although these new jobs will take some time to emerge. Leaders must figure out how to create workers of the future who are adept at using AI to solve problems and innovate. The tool reduced manual labor by 82% and increased accuracy to nearly 100%.

These can in turn lead to flawed financial decisions regarding credit or investments,” said Mr Menon, chairman of the Global Finance and Technology Network (GFTN), a not-for-profit entity newly formed by the Monetary Authority of Singapore (MAS). A tech-agnostic approach future proofs regulatory frameworks, by focusing on what matters (the outcomes) and not requiring perfect foresight on the part of regulators for how technology will evolve to deliver them. Please read the full list of posting rules found in our site’s Terms of Service. However, the proper implementation of AI within a finance function cannot be realized without strong leadership. Finance leaders have a critical role to play in navigating this transformation, guiding their teams through the anxieties and uncertainties, and championing AI adoption. Organizations must either adapt to harness AI’s transformative capabilities or risk falling behind in an increasingly technology-driven profession.

Who Pays for Innovation? Why Market Collaboration is the Key to More Connectivity

“You can’t wait for ROI to come through on a test use case and then deploy a bigger budget. By the end of the year, companies investing in AI applications and agentic workflows will outpace those that aren’t. They’ll leverage agentic systems that manage multiplicity, respond to natural language and work seamlessly with existing software tools and platforms—accelerating their benefits and beating the competition in a shorter time.” Showcase the ability of AI to protect critical assets, including intellectual property, customer data and infrastructure. Its advanced capabilities, such as anomaly detection, threat intelligence and real-time monitoring, make AI-powered security solutions highly effective.

Still, there is reason to be cautious about any software provider claiming to have a proprietary code when most wealthtech firms have access to the same data, leading tech providers said. “You should be raising a hedge fund and seeing if you can beat Ray Dalio.” Let’s all remember ai in finance examples what happened with the Crowdstrike outage earlier this year, crashing millions of Windows PCs — including systems run by every major airline. According to Microsoft, the lagging response from a particular airline was caused by its failure to modernize its IT infrastructure.

Exploring Key Management Solutions for AI Agents Wallets

AI is changing the work of finance professionals by automating repetitive operations, improving fraud detection, offering real-time insights and modernizing audit processes. And beyond the automation of routine tasks, AI is transforming the way finance professionals work, allowing them to focus on more strategic, impactful work. Like any tool, AI agents aren’t going to magically solve every business problem.

The next statistic states that 71% of business leaders would give preference to a candidate with less experience, as long as they had AI skills. This essentially means that AI literacy is the new level of digital literacy we should all be aspiring to. Listing Word or Excel on your resume within your skills section, although useful, is becoming outdated.

• For example, Walmart’s senior vice president and head of investor relations, Stephanie Wissink, recently shared how the retail giant has used large language models to automate data transformation projects related to supply chain operations.
• AI-powered risk management solutions are proactive, enabling businesses to stay ahead of potential issues.
• The possibilities are endless — streamlined creative processes, automated business operations, self-service for customers, and more.

Read on for an AI agent crash course, including a definition of this new technology and answers to questions about security, team impact and the investment required for leaders to get their organization caught up. If you’re not sure what AI agents are, you’re already behind the AI curve. You’re also not alone—AI is developing at a dizzying pace, and most leaders are struggling to keep up.

As the finance profession embraces these AI technologies, adjustments must be made. Professionals must focus on developing the necessary skills to use AI properly, and organizations and finance leaders must ensure they are providing the proper road maps, tools and opportunities for their professionals. While integrating AI agents into your organization can be challenging—there’s a lot of strategy to consider, important governance to put in place and team members to involve—the potential benefits are enormous.