By Rich Bond
I think it’s important for anyone in finance or treasury to read the article “Treasury and Risk” just featured – “What ChatGPT Means for Finance.” It is an excellent interview with Gartner Analyst Mark D. McDonald.
ChatGPT is a hot topic, but it is not ready for internal use by individual corporations. Any proprietary question you ask becomes property of ChatGPT. Furthermore, McDonald warns that it cannot be used for financial forecasting or reporting. “It’s important to remember that, in the realm of finance, if the system’s not right and you rely on that information for decisions, you are liable. Not the system.”
In my opinion, other technology is already changing treasury and finance in lots of areas.
There are tools called APIs, which program highly repetitive tasks, that are being used in some treasury functions, particularly financial institutions, which have lots of similar transactions. That frees up treasury to work on more strategic projects.
Treasury can then add value by “looking at the forest, rather than the trees.” So far, ChatGPT just generates content, which can be false, and adds little value.
What adds value is NOT A.I., but simple logic and intelligence.