Generating value with gen AI

CFOs looking to create value may find opportunities with generative AI (gen AI). According to senior partner Ben Ellencweig and colleagues, many finance functions in large organizations will use gen AI in some capacity within the next five years. Gen AI can be considered as part of a wave of digitization that can nudge companies ahead of their peers. Top-performing finance functions that use intelligent automation such as robotics, for example, financially outperform other organizations by as much as 1.4 times.

Generative AI is part of the ‘third wave’ of digitization—and leading finance functions are already using it.

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Three sets of scaled circles shows the financial performance of digitized organizations vs other organizations in 2023, based on self-reports. Each set represents a wave of digitization: data visualization and connectivity, advanced analytics for finance, and robotics. The first wave shows 65% of top-performing organizations are digitally connected and using data for the basics, such as visualization in dashboards, compared with 62% of other organizations. The second wave shows 60% of top-performing organizations are already using advanced analytics for discrete use cases, such as cost analysis, budgeting, and predictive modeling, compared with 37% of other organizations. The third wave shows 36% of top-performing organizations are using robotics and AI, compared with 26% of other organizations.

Source: McKinsey biennial global survey of CFOs.

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To read the article, see “Gen AI A guide for CFOs,” November 15, 2023.