Do you know any ChatGPT use cases for Finance?
ChatGPT is an AI language model that is capable of handling vast amounts of data. Also, it has the ability to provide real-time insights on a variety of topics, including finance.
As a finance professional, you likely understand the importance of data analysis in making informed decisions.
However, traditional methods of data analysis can be time-consuming and prone to errors. That can be the case, especially when dealing with large volumes of data.
ChatGPT can help solve these problems by providing finance professionals with real-time insights that can help them make faster, more informed decisions.
Therefore, in this blog post, we will discuss the importance of ChatGPT for finance professionals. Also, I will provide some examples of how to use it in the industry.
Table of Contents
How Did I Master ChatGPT?
Everybody talks about ChatGPT. But nobody tells you how to use it or provides you with ChatGPT use cases for Finance.
Throughout my career, I always used technology as a lever to deliver more valuable work in an efficient way. This helped me get promoted faster than my peers.
In the last weeks, I have been teaching myself how to use ChatGPT. Then I used my 14+ years of experience in Finance to leverage ChatGPT for real use cases in accounting, financial analysis, business partnering, and productivity purposes. And there are so many possibilities!
But I see too many people who don’t know where to start. This is why I want to help. I want to make Finance the first function that leverages AI to its maximum.
Imagine if we become as good at using ChatGPT as we are with Excel!
Why Are ChatGPT Use Cases for Finance So Important?
The finance industry is data-driven, and finance professionals are constantly looking for ways to improve their data analysis capabilities. ChatGPT use cases for finance are becoming increasingly important in this regard for several reasons:
- Speed: ChatGPT can analyze vast amounts of data much faster than humans. That provides finance professionals with real-time insights that can help them make faster, more informed decisions.
- Accuracy: Professionals tested ChatGPT on a huge amount of data before releasing it. This makes it more accurate than traditional methods of data analysis, which are prone to human error.
- Scalability: ChatGPT can analyze large volumes of data. This makes it a scalable solution for finance professionals who need to analyze large datasets.
- Automation: ChatGPT can automate many tasks that would traditionally require human intervention. That means freeing up time for finance professionals to focus on more complex tasks.
- Predictive Analytics: ChatGPT can analyze historical data and identify patterns and trends. Doing this enables finance professionals to make predictions about future market conditions and make better investment decisions.
These are some of the reasons why I created this guide for finance professionals.
Examples of ChatGPT Use Cases for Finance
Here are some practical examples of where you can use ChatGPT for finance. Additionally, you can find much more in my 92-page guide.
#1 Example: Financial Analysis
One of the primary applications of ChatGPT in finance is financial analysis. Financial statements such as income statements, balance sheets, and cash flow statements are crucial documents for understanding a company’s financial health.
Furthermore, traditionally, finance professionals would have to manually analyze these statements, identify trends and anomalies, and draw conclusions. However, with ChatGPT, the process is much faster and more accurate.
By inputting financial statements into ChatGPT, the model can quickly analyze the data and provide real-time insights. Such as revenue trends, profitability ratios, and any red flags that are important.
#2: Real Use Case Example
Here is a real-time example of using ChatGPT for finance.
Create agenda for a meeting
- Having an agenda in a meeting is important because it increases efficiency, improves preparation, encourages participation, and increases accountability. If you need help drafting an agenda for a meeting, ChatGPT can assist you by generating a list of suggested topics based on the meeting’s purpose and attendees.
Prompt:
I want to create an agenda for a meeting with the IT team about pending issues in SAP that are not getting resolved. Can you give me some examples of what should be included?
Transcript of the result:
- Overview of the current state of SAP: Give an overview of the current state of SAP, highlighting any ongoing issues, as well as the impact of these issues on the business.
- List of pending issues: Provide a detailed list of the pending issues in SAP that have not been resolved. This should include a brief description of the issue, the severity of the issue, and the expected resolution date.
- Review of the priority of each issue: Review and prioritize the pending issues in SAP to ensure that the most critical issues are being addressed first.
- Review of the progress made on each issue: For each pending issue, review the progress that has been made so far, and identify any roadblocks or challenges that need to be addressed.
- Action plan to resolve the issues: Develop an action plan to address the pending issues in SAP, including identifying the responsible parties, outlining the steps that need to be taken to resolve the issues, and establishing timelines for completion.
- Roles and responsibilities: Clearly define the roles and responsibilities of each team member involved in resolving the pending issues.
- Communication plan: Develop a communication plan to keep all stakeholders informed of the progress being made on the pending issues.
- Follow-up and review: Set a timeline for follow-up and review of the progress being made on resolving the pending issues to ensure that the action plan is being executed effectively.
#3: Real Use Case Example
Here is another real-time example of using ChatGPT for finance, more specifically ChatGPT for accounting.
Explain accounting principles to non-finance professionals
- Accounting principles are already difficult to understand for finance professionals. For non-finance professionals, it’s even harder. However, to ensure compliance with the accounting principles, you need to be able to explain the goals of these principles and what it means for your colleagues. To help you formulate it in a simple manner and the implications for your colleagues, you can use ChatGPT for accounting.
Prompt
Explain asc 606 to my colleague from the sales department.
Transcript of the result:
Certainly! ASC 606 is a new accounting standard that affects how we recognize revenue from the sale of our products and services. The purpose of the standard is to provide a more consistent and comprehensive approach to revenue recognition across all industries, replacing the previous industry-specific revenue recognition guidance.
The standard requires us to follow a five-step process for recognizing revenue:
Identify the contract with the customer: This step requires us to identify the contract with the customer, which can be in the form of a written or oral agreement.
Identify the performance obligations in the contract: This step requires us to identify the performance obligations in the contract, which are the promises to transfer goods or services to the customer.
Determine the transaction price: This step requires us to determine the transaction price, which is the amount of consideration we expect to receive in exchange for transferring the goods or services to the customer.
Allocate the transaction price to the performance obligations: This step requires us to allocate the transaction price to the performance obligations in the contract, based on their relative standalone selling prices.
Recognize revenue when each performance obligation is satisfied: This step requires us to recognize revenue when each performance obligation is satisfied, which is when the customer obtains control of the goods or services.
Overall, ASC 606 is intended to provide a more principles-based approach to revenue recognition that better reflects the economic substance of contracts with customers, and improves comparability across industries and geographies. This means that we will need to ensure that our sales contracts are properly structured and documented and that we accurately account for the revenue that we earn from those contracts.
Benefits of Using ChatGPT for Finance
Here are 30 examples of you can benefit from ChatGPT:
1) Productivity:
Anything that is taking time, you can try to do it first with ChatGPT
- Idea generation
- Correcting a text
- Summarised a text
- Translating a text
- Rewrite something complicated in a more simple and easy-to-understand language
- Research terms and definitions (for example accounting standards)
2) Tutorial for tools
So far I have found valid tutorials for:
- Excel
- PowerPoint
- Word
- PowerBI
- SAP
- Quickbooks
- (and also shortcuts in Windows + generally all the software listed above)
3) Scenario analysis
- Break-even analysis
- Compare two scenarios
- Change of price and impact on demand (elasticity)
- Hourly rate
- Effect of inflation
- Business case ROI
4) Create finance procedures
- Closing checklists
- Standard Operating Procedures
- Internal control
- A step-by-step guide to making a task
- Dunning procedure and letters
- Finance Guidelines
5) Write high-quality emails
- Budget guidance
- Request input
- Prepare a meeting
- Executive summary
- Minutes
- Communication with clients and suppliers
And I am discovering more use cases every day.
How can you start?
If you want to learn how to use AI to boost your career, I have worked over the last weeks to come up with a solution. Finally, I’ve developed a guide that explains you:
- How to start using ChatGPT with a step-by-step instruction
- How to use ChatGPT to create Excel Formulas
- How to use ChatGPT to analyze figures
- How to use ChatGPT to write emails
- How to use ChatGPT to write SOP
- What ChatGPT can do to help you
- And much more
With this guide, you can start using ChatGPT for Finance and rip the benefits within less than 1 hour.
Also, this guide is unique, you will not find it anywhere else.
And it’s totally relevant for finance professionals.
Conclusion
In short, ChatGPT is becoming an increasingly important tool for finance professionals.
Its ability to quickly analyze vast amounts of data and provide real-time insights can help finance professionals make faster, more informed decisions.
As the finance industry continues to evolve, it is essential for finance professionals to stay up-to-date with the latest technologies, including ChatGPT, to remain competitive and provide the best possible service to their clients.
Also, by implementing ChatGPT use cases for Finance, finance professionals can improve their data analysis capabilities and stay ahead of the curve in this rapidly changing industry.
If you are a manager, ChatGPT can help you make your team more productive.
If you want to train your team on how to use ChatGPT in a business context, I can help you.
I have launched the first and only ChatGPT training for business. I have still some slots for the next 4 weeks but they are going fast. Check this page if you want to bring your team in a position to leverage AI for their work.
