Generative AI in Finance: What Is It and How Can It Be Applied?

This IDC Perspective explores the application of generative AI in the office of the CFO, emphasizing the importance of understanding the various types of AI, their risks, and limitations. It highlights the potential of generative AI to enhance financial processes but advises a cautious approach due to the highly regulated nature of finance. The document stresses the need for internal preparation and skepticism when evaluating and implementing AI technologies to ensure compliance and effective decision-making."Generative AI can be very useful to the office of the CFO, but there are limitations, risks, and work that need to be done internally to get prepared for usage. Finance is a highly regulated industry, so usage of generative AI and other AI types should be examined, understood, and implemented with a heavy dose of skepticism." - Heather Herbst, research director, Worldwide Office of the CFO, IDC