Ruth McNamee explores how GenAI is transforming finance, automating tasks, enhancing decision-making and providing insights to deliver better business results
The landscape of Generative Artificial Intelligence (GenAI) is changing at an unprecedented pace, offering companies a unique opportunity to drive innovation and secure competitive advantages.
Among the various business functions poised to benefit from this technological revolution, the finance function stands out as ideal candidates for early adoption.
The power of GenAI in finance
GenAI has the potential to revolutionise finance functions by automating routine tasks, enhancing decision-making processes and uncovering valuable insights from vast datasets.
From virtual assistants that facilitate chatting with data and documents through automated document processing, to automating financial reporting, the potential applications of GenAI are vast and varied.
By implementing a structured and systematic approach, finance functions can improve efficiency and drive strategic growth.
Initial steps: ‘TOM Light’ and enablement
For organisations eager to start their GenAI journey, adopting a streamlined target operating model (TOM), or ‘TOM Light’, is an excellent first step.
This can help organisations to quickly realise the benefits of GenAI without extensive initial investments or complex restructuring.
By focusing on a few high-impact use cases, supported with a preliminary governance and technology set-up, finance teams can demonstrate the value of GenAI and build momentum for broader adoption.
The GenAI revolution requires companies to actively support employees during the transition, convincing them of the benefits and initiating a cultural shift. New skill sets are in demand, and employees need to learn to use new GenAI systems effectively in a corporate context.
To expand the pipeline with additional use cases and support the successful roll out of high-impact use cases, it can be beneficial to start by training an initial group of employees and then extend training step-by-step.
A role-based upskilling initiative typically includes foundational and technical AI knowledge, complemented by practical use case ideation sessions — from small daily benefits to large-scale GenAI use cases.
For example, knowing how to effectively create prompts and recognise potential applications for GenAI can create efficiencies in an accountant’s or controller’s daily tasks.
Long-term vision: a comprehensive target operating model
While ‘TOM Light’ offers a quick and effective entry point, long-term success with GenAI requires a more comprehensive TOM.
This model should be designed to handle GenAI effectively and responsibly, ensuring the technology is integrated seamlessly into the organisation’s processes and culture.
Key components of a comprehensive TOM include:
- Governance framework: establish clear guidelines for the responsible use of GenAI, including data privacy and security measures.
- Talent and skills development: invest in larger-scale enablement, building on the experience with the initial group to equip finance teams with the skills needed to leverage GenAI effectively.
- Technology infrastructure: build a robust and scalable technology infrastructure that can support the deployment and ongoing maintenance of GenAI solutions.
Creating a roadmap for success
With a TOM in place, organisations can develop a detailed roadmap outlining the steps needed to implement GenAI across the finance function.
The transformative potential of GenAI is undeniable, and finance functions are uniquely positioned to lead the way.
By taking immediate action and adopting a structured approach, finance teams could drive innovation, enhance efficiency and create sustainable competitive advantage for their organisation.
The time to embrace GenAI is now — don’t just observe the revolution, be a part of it.
Ruth McNamee is Finance Transformation Director at PwC
LOADING...