Exploring Myths of A.I in Finance & Debunking them
As companies just started to embrace AI in their corporate finance teams, there has been lot of misconceptions about it. Here are few myths that come up in every AI discussion with finance teams
- AI will automate 100% of the processes.
- AI is a Black box, so it cannot be applied to finance.
- One unified AI model for all finance functions
Lets discuss these in detail
NOT TRUE: AI will automate 100% of the finance. Human judgment is a key input needed for AI to be effective in finance. AI is an enabler for finance teams to reduce their effort and increase accuracy.
NOT TRUE: AI is a Black box. AI used to be a black box. But, now with the advent of cutting edge models, it can give an explanation of what input parameter has caused the biggest impact.
NOT TRUE: One unified model for all finance functions. For example, People cost forecasting will have different input data sets when compared to Marketing predictions. So every function needs its own AI model to cater to the needs of their users.
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