- Generative AI like ChatGPT offers companies potential applications in numerous areas.
- The area of risk and finance is still lagging behind and has not yet exploited the great potential of generative AI.
- Tapping into this potential enables companies to save resources and can also have a positive impact on receivables management.
When the topic of generative AI first attracted attention worldwide with the launch of ChatGPT in November 2022, it was quickly apparent that this technology was going to effect a lot of change. The chatbot took just two months to cross the magical 100 million users mark. A huge AI wave is being created and is something that numerous companies have quickly recognized. Meanwhile, many of them understand that what we are dealing with here is a disruptive technology. The McKinsey survey The state of AI in 2023: Generative AI’s breakout year polled around 1,700 company representatives at board, middle and senior management level from all around the world.
The results speak for themselves:
What is generative artificial intelligence?
Generative AI is a technology that creates content autonomously. This content may consist of text and images, but may also include complex models, Excel formulas, analyses, and program codes. The content is produced on the basis of large volumes of data that are evaluated with the help of neural networks and deep learning techniques. The best-known example of generative AI is ChatGPT from US company OpenAI.
One in three companies is already using generative AI.
But is this also the case for finance-related tasks within a company? When the McKinsey survey was conducted in April 2023, one third of respondents said that their company was already using generative AI regularly in at least one business function. According to the survey, it is used most frequently in marketing, sales, service and product development, with risk management, corporate finance and other business functions following a long way behind.
Business functions that regularly use gen. AI:
Untapped potential in risk management.
If the survey results are to be believed, the use of generative AI is set to increase even more in the future. Accordingly, more than two-thirds of respondents assume that their own company will increase its investments in AI in the next three years. They see untapped potential not just in production, but especially in risk management. In this area, the companies polled have already achieved above-average cost savings and increased their own sales with the help of AI in the past.
Cost decreases and revenue increases from AI adoption
Generative AI will change the world of work.
The EOS Survey “European Payment Practices 2022” already showed that digitalization is a major issue when it comes to risk and finance. As a result, if you don’t digitize, you will end up sitting on your receivables. Especially in respect of AI, the respondents were unanimous: Just under half (44 percent) assumed even before the introduction of ChatGPT that the technology would revolutionize receivables management in the future. The results of the McKinsey survey at least suggest that they will be proven right.
Generative AI will change the world of work. It is a good sparring partner for employees and – if used correctly – offers companies a distinct competitive edge.
AI and data expert at EOS KSI Romania
At EOS, a leading financial group specializing in receivables management, employees are testing how generative AI can support their day-to-day work. “How can I respond quicker to queries, produce reliable forecasts, and allow staff fast access to information? Generative AI offers potential in many areas,” says Paul Baltag, AI and data expert at EOS KSI Romania. In this context, the technology is not intended to replace any work but to simplify it and in doing so boost staff productivity.
Would you like to enjoy the benefits of AI in receivables management now? We’d be happy to help.
Photo credits: EOS