The e-book “Generative AI: Practical Use Cases for FP&A Professionals” by the Business Partnering Institute (BPI) provides an overview of how Generative AI (GenAI) is transforming the finance function, particularly in Financial Planning and Analysis (FP&A).

You can download the full e-book from BPI website or NeoForm LinkedIn page.

Below is a detailed summary of the key points and use cases discussed in the e-book:

1. The Evolution of AI in Finance

• Pre-AI Finance Function: Historically, finance was characterized by manual processes, including data entry, reconciliation, transaction handling, risk management, and financial analysis. These tasks were time-consuming, prone to errors, and largely reactive.
• AI-Enabled Finance Function: AI is transforming finance by automating routine tasks, enabling predictive analytics, and improving regulatory compliance. This shift allows finance professionals to focus on strategic initiatives and higher-value tasks.

2. Rapid Adoption of AI in Finance

• A May 2023 Gartner survey found that 39% of finance leaders are already using AI/machine learning (ML), with an additional 29% planning to adopt it.
• By 2026, Gartner predicts that 80% of large enterprise finance teams will rely on internally managed generative AI platforms trained with proprietary business data.
• Many finance professionals already have access to generative AI tools like Microsoft Copilot, ChatGPT, and Google Bard.

3. Generative AI Use Cases in FP&A

The e-book outlines three main categories of generative AI applications in FP&A:

A. Research Applications

• Competitor Analysis: GenAI can summarize the competitive landscape, providing insights into competitors’ market share, products, and services. This helps FP&A professionals make better recommendations on pricing, marketing spend, and investments.
  • Example Prompt: “Act as an expert on the US banking industry and provide an overview of the five largest banks and their market share.”
• Market Entry: GenAI can provide detailed information on new markets, including demographics, economic trends, and regulatory environments, helping FP&A professionals build business cases for market expansion.
  • Example Prompt: “Act as an expert on German car manufacturing and outline opportunities and challenges related to entry into the German market as a foreign car manufacturer.”
• Customer Behavior: GenAI can analyze customer trends and predict future demand, enabling FP&A professionals to build predictive financial models based on customer insights rather than historical data.
  • Example Prompt: “Act as an expert on consumer trends in the UK. Provide a prediction of future demand for electric vehicles.”

B. Analytical Applications

• Master Data Management: GenAI can automate data cleaning, sorting, and error detection, improving data quality and enabling more accurate financial analysis.
  • Example Prompt: “Present these products and their current inventory in tabular form, alphabetical order…”
• Analytical Expertise: GenAI can propose different analytical approaches and provide guidance on financial modeling, profitability analysis, and other techniques.
  • Example Prompt: “Act as an expert on financial modelling and analysis and provide three common approaches to profitability analysis.”
• Coding, Queries, and Formulas: GenAI can generate SQL, VBA, or Excel formulas, helping FP&A professionals automate data extraction and analysis.
  • Example Prompt: “Act as an expert on Microsoft Excel. Propose a formula to calculate the net present value at 5% annual interest rate…”
• Data Visualization: GenAI can translate written data into visual representations like charts, making it easier to communicate insights to stakeholders.
  • Example Prompt: “Visualize a waterfall chart based on the following data…”

C. Communicative Applications

• Personalized Learning: GenAI can create customized learning materials, helping FP&A professionals upskill in areas like data analysis and strategy formulation.
  • Example Prompt: “Act as an expert on the modern finance function and explain the transition of finance from bean counter to business partner.”
• Writing Assistance: GenAI can draft emails, reports, and business plans, saving time and improving the clarity of communication.
  • Example Prompt: “Act as an expert on facility management and recommend three reasons for senior leadership to install solar panels on an office building.”

4. Generative AI and Personal Effectiveness

• GenAI is not only transforming finance functions but also enhancing personal effectiveness. It helps professionals work smarter by automating repetitive tasks, providing personalized learning, and assisting with writing and communication.

5. Conclusion

• It emphasizes that generative AI is rapidly becoming a critical tool for FP&A professionals, enabling them to automate routine tasks, gain deeper insights, and communicate more effectively. By leveraging GenAI, finance teams can transition from reactive, manual processes to proactive, data-driven decision-making.

Key Takeaways:

• Automation: GenAI automates repetitive tasks like data entry, reconciliation, and report generation, reducing errors and freeing up time for strategic work.
• Predictive Analytics: AI-driven tools enable more accurate forecasting and trend analysis, helping organizations make proactive decisions.
• Enhanced Communication: GenAI improves the ability to communicate complex financial insights through data visualization and clear, concise writing.
• Personal Effectiveness: GenAI enhances personal productivity by providing personalized learning and writing assistance.

Overall, it highlights the transformative potential of generative AI in finance, offering practical use cases and examples that FP&A professionals can implement to improve efficiency, accuracy, and strategic impact.

Thanks to BPI and the author, Christian Frantz Hansen, for preparing this useful e-book.