Why the time is right for generative AI to enter finance processes like consolidation
Hesitant about whether the generative AI tech is mature enough for adoption? Now is the perfect time. Large language models have left the early development phase, and GenAI assistants are no longer “stochastic parrots.” Methods such as Retrieval Augmented Generation (RAG) are in place to limit — the rightly feared — “hallucinating” of language bots and can back up their output with valid source information.
In other words, AI is now speaking our language and can effectively improve our processes — with human oversight, of course.
Five ways generative AI assistants, like Ask AI, help finance teams
1. Efficiency
You ask, GenAI acts. GenAI understands data queries and requests deeper than common search engines because it actually understands language, thanks to its natural language processing. What’s more, GenAI’s grasp of language makes it possible for it to interpret unstructured data, like texts, emails, and narrative reports, so it can consider more information during analysis and, thus, create more nuanced outputs.
GenAI’s sophisticated ability to both understand and interpret information is a major advantage to finance teams that are tasked with time-sensitive data discovery and analysis tasks.
Use case: Ask AI and efficiency
By simply typing or speaking a data request into its chat, Ask AI can investigate reporting data at any level of granularity and visualize the outcome of the queried analysis in a chart within a dashboard.
What would take a human hours takes Ask AI seconds, leaving finance with more time to focus on taking action and asking questions. As Ask AI learns to speak the language of your company — the specific jargon your employees use — it gets even faster.
2. Visualization
GenAI has the unique ability to produce new information, like text, images, graphics, and data visualizations. For finance, transforming data and spreadsheets into graphs and charts is critical to communicating performance information to stakeholders. GenAI expedites graphics’ creation and the process of choosing the best way to communicate information because it can recalibrate its illustrations in an instant.
Use case: Ask AI and visualizations
Ask AI can turn any data set or inquiry into a beautiful visualization that clearly communicates numbers and results, making it easier for stakeholders to understand and digest performance trends.
3. Analysis
GenAI is known to be more accurate than human intelligence because it eliminates subjective bias and human error while being able to consider much larger datasets. That said, GenAI is only as accurate as the information that goes into the system. For this reason, finance teams should be wary of black box systems, where there’s no transparency into AI’s logic and decision-making.
Use case: Ask AI and Analysis
Ask AI can spot weaknesses or opportunities in performance. It can drill into data to investigate outcomes and identify the root cause affecting performance results. You can assess key business drivers and use this information to validate decisions or adjust strategies. As a result, finance teams have the ultimate authority over the AI and the full context required to trust its outputs or provide it with more information.
4. Actuals reporting
AI was created to help, not replace. That said, GenAI generally has a special talent for visualizations and insight extraction, which makes it an extremely valuable tool for executing management reporting and analysis processes related to consolidation.
Think about all the reports that use actuals:
- monthly sales by region/channel/product
- revenue actual vs budget comparison
- profitability analysis by brand/market segment/sales channel
- revenue trend analysis
- revenue by region/sales channels
- revenue margin analysis
GenAI can source and illustrate the information within these reports in seconds.
Use case: Ask AI and actuals reporting
We’ve already established that Ask AI can visualize actuals into reports instantly. In addition to sophisticated visualizations, users can request Ask AI to change the visualization’s format. Users can also use GenAI to drill-down into the actuals to learn more about the results — and then again visualize those findings.
5. Narrative reporting
We all know the right words can be hard to find, especially under the pressure of regulatory deadlines. GenAI doesn’t just read language. It learns it and can reproduce it by statistically anticipating what word will come next in a sentence.
As a result, GenAI can write narration for you — a handy tool for busy finance teams tasked with creating narratives for their reports and communicating context around results.
Use case: Copilot and narrative reporting
In addition to Ask AI, a proprietary tool based on GenAI technology, CCH Tagetik also uses top-notch Third Party GenAI technology. CCH Tagetik Intelligent Disclosure is natively integrated with Microsoft 365 and leverages Microsoft Copilot, which is Microsoft’s GenAI assistant. Microsoft Copilot generates text suggestions and comments, creating a first draft of your corporate performance management story. Finance teams can take a Copilot’s first draft and adjust it so it’s in compliance with company-specific guidelines. As the saying goes, there are no good writers, only good editors.
Generative AI is new to finance, but it’s not going anywhere
Generative AI will fundamentally change the way we interact with analytical software, and we aim to provide it as a service to finance teams. In the increasingly complex world of corporate reporting and consolidation, speed must not come at the expense of accuracy in the day-to-day work of specialist departments. Generative AI is the tool that empowers finance teams with both.
Learn how you can try CCH Tagetik Ask AI and AI in CCH Tagetik today.