Generative AI is the subset of Artificial Intelligence that focuses on creating content that relates or resembles human-generated content. It is creating content that deals with audio, video, images, and texts that are nearly related to human-generating content, from many models of Generative. From the Mid-2020s to the present, Generative AI has had implications across various industries such as Health and Care, Education, Business and Finance, Cyber-Security, Banking and Insurance, Agriculture and Food Industry, Supply chain and Logistics, E-commerce and Retail, Fashion, Real Estate, and Architecture and Design. In this article, we will discuss the role of Generative AI in Business and Finance such as how generative AI plays an important role in it, and what type of advantages, features, and feasibility in the Business and Finance Field. Some Generative AI tools that are commonly used to generate the related content are TensorFlow, OpenAI's GPT Library, Quant Connect, IBM Watson Studio, etc. which we will discuss in detail below later.
Some Applications related to Business and Finance in which Generative AI plays a significant role in current market(industry) are described as:
Generative AI has a most significant role in Trading platforms. AI-powered Trading systems analyze market trends, Social Media activities, historical data, and for this they use very complex algorithms to identify patterns and correlations from which these systems are able to predict future market movements. AI helps traders in their decision-making by providing them the information based on the analyzed data. It can be seen from history that how much AI helps traders in growing their finances and improve their growth as the domestic equity market had a value of 98.5 trillion U.S. dollars in 2022 to 107trillion U.S. dollars delivering a return of nearly 55% in the 12-month period (in rupee terms) this gives the fair idea of the potential of market size that AI impact. Artificial Intelligence proves to be very beneficial in terms of trading.
Machine Learning-Based Fraud Detection software uses some techniques or algorithms to sift through the given data and come up with patterns of likely cases of fraud. The algorithms in this case have learned from historical data of fraudulent and legitimate transactions. This gives them room to learn over time, thus becoming more effective in the identification of new and emerging scams.
Frauds Detected by Generative AI are Insurance Fraud, Payment Card Fraud, Application Fraud, Account Take Over Fraud, Identity Fraud, and many more related to the business field. AI reduces the time of monitoring transactions. Generative AI learns from new data and allows fraud detection models to adapt information about new threats and techniques. It protects customers from transaction and credit fraud.
Credit Scoring uses Generative AI Algorithms to assess the Creditworthiness of businesses applying for loans or credit. These systems help us analyze a variety of factors such as Credit History, Income, Debt-to-income Ratio, Payment History, Employment Status, and many more business-related variables. By using Artificial Intelligence and Machine Learning Algorithms these systems become able to predict and analyze the credit records of borrowers, employees, and other users of this system more accurately. AI and ML algorithms adapt the new data from which they predict more accurately and reduce the risk of false positives and false negatives. Nubank, Kabbage, Affirm, and Kreditech are the Fintech Companies that deal with credits, and loan systems by using AI, and ML algorithms to analyze the trends for their business. Moreover, AI-powered credit scoring systems enhance the efficiency, accuracy, and fairness of credit evaluation processes.
In artificial intelligence-based Pricing, AI algorithms dynamically adjust product prices, discounts, and promotions based on demand, competitor pricing, and market conditions, optimizing revenue and profit margins for businesses. The aim of using an Artificial Intelligence pricing algorithm is to improve profit margins strategically. The key advantage of AI pricing is its ability to handle vast amounts of data. Traditional pricing methods such as Excel & ERP systems normally rely on manual analysis, which is time-consuming and prone to human error.
From AI pricing it becomes easy as the huge data of excels, pdfs and analyzing large dataset can now be done in fraction of time that provide more accurate information for pricing decisions.
A list of several tool of Generative Artificial Intelligence that can be useful for Business and Finance are chatgpt, Gemini, Powerdrill, Synthesia, DALL-E3, Tome, Well said etc.
ChatGPT is one of the most famous Artificial Intelligence tools till now among the world. It is popular due to its knowledge about every field’s data in simple words huge data of information (till 2022), analyzation used for its training, making through which it answers the prompts with very accuracy. Chat-Gpt can be useful in Business and Finance from several ways that will be discussed in this article.
Artificial intelligence Chat-GPT is Large Language Model that can handle social media marketing campaigns. It can be through creating content and publishing the marketing schedules for campaign. As it has the ability to analyze a large amount of data from that it can identify the business competitor strategies and help you to get the target audience. Artificial intelligence Chat-GPT is Large Language Model that can handle social media marketing campaigns. It can be through creating content and publishing the marketing schedules for campaign. Chat gpt according to Business and Finance can give plans about crafting a marketing plan by giving it a proper prompt it will give the useful result as shown:
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Artificial intelligence Chat-GPT is Large Language Model that can provide guidance in business and finance management as it can explain complex concepts related to business and finance and make complex strategies easy to understand that can be useful for anyone who looking for financial advice. The main advantage of it is, its availability anyone from anywhere can get the financial advice about it’s respective challenge or problem. Chat gpt according to Business and Finance can guide about Finance by giving it a proper prompt it will give the useful result as shown:
Artificial intelligence Chat-GPT is Large Language Model. It plays a necessary role in cash flow management (deals with tracking of amount coming in and out). Chat gpt can give the suggestions about improving cash flow and on managing the account expenses. It can create payment terms with suppliers for you. Chatgpt can be valuable tool for businesses tool to maintain financial stability and can help for making the best information decisions with its ability to analyze data and provide recommendations. According to Business and Finance Chat-GPT can guide about cash flow management by giving it a proper prompt it will give the useful result as shown:
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In this era where each and everything is digitalized, effective communication is key for all types of business correspondence. Getting your point across efficiently can be made easier by using ChatGPT. Chatgpt is extremely proficient when it comes to writing emails and business letters. It can make things effortless by ensuring the use of correct tone and grammar and offering relevant templates that can save us both time and effort. From writing formal proposals to newsletters, it can provide us with polished and precise output which is all that we need to make our communications simple and confident.
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It can help in easy and consistent flow of communication as well as coordination within teams. it can perform multiple operations including assigning tasks, setting deadlines, tracking progress etc. chatgpt is quite helpful as it improves productivity for business of all sizes and kinds, saves time, simplifies task management process, solves complex equations and more. It allows you to put reminders and notifications to ensure that tasks are completed on time. With large knowledge base, Chatgpt can suggest and provide solutions to various problems and offers relevant advice. it can analyze data to identify patterns helping businesses in taking decisions related to task allocation.
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Artificial intelligence Chat-GPT is Large Language Model that can play necessary role in suggesting the small business innovative ideas for users as it has a large scale of data for analyzation from which it can give the innovative businesses strategies in many sectors as education, trading and etc. We here take the example of education as it helps the teacher by giving him ideas about education, it can generate the study material, can give answers to questions and provide feedback details etc. It not only increases the learning it also plays a role on reducing the teacher burden by generating the tasks, quizzes and related papers etc. Here below we use the prompt through which we get the business suggestion idea:
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Claude AI is also the LLM model of artificial intelligence same as Chatgpt but it can have more features that chatgpt some major distinguishing example is it can read the content (like some documents) if you give the URL access to it. The application of this tool is business document analysis and many more. In this blog, we will discuss it with respect to document analysis.
Claude AI can help us in document analysis as main example of it reading business plan documents, the minutes of meeting that is the main document in software development business with that engage the record of meetings with client. In the given example we gave the URL of document of the pension record statement and it gives the exact count estimate described in the document as shown. So, from here you can think how much it is helpful in business and finance records management. We can use it many domains like to check some main things of CVs, can use to get the trading chart values of exact trends that was described in doc format.
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Claude AI is an artificial intelligence tool, It is an AI chatbot. In business, it can be used as a power chatbot for customer services due to its ability to understand natural language and answer the questions accordingly that can help in improving the customer experience. It is helpful because of its ability to fast answering. It is available 24/7 as if any customer needs it at 3 am then no problem it works tirelessly. It gives quick and accurate answers to customers from which they feel valued and understood. By using it businesses can free up humans from more complex tasks and keep customers happy from its quick service.
Powerdrill is one of a generative Artificial Intelligence tool that can act as a digital detective sergeant for supply chain. It analyzes the data from suppliers, warehouses and transportation providers, it helps gain insights into their supply chain operations. From historical trends it can identify(pinpoint) bottlenecks of supply chain. By identifying opportunities to reduce shipments and transportation cost. It helps by lowering their operational expenses. Identification of bottlenecks in supply chain helps to mitigate operational risks that could impact performance related to finance.Powerdrill.ai serves as a valuable tool for businesses and finance by sticking data-driven insights to optimize supply chain operations, reduce costs, enhance customer satisfaction.
DALL E3 is a generative Artificial Intelligence (AI) tool that relates to altering text input into images. It can be useful in business and finance. In this blog, our discussion is linked with text so far i.e. answering the questions, getting business strategies, and writing business letters with the help of different AI tools but here we will discuss generating images (graphs) from input text. In business and finance, DALL-E3 helps us by creating graphs according to our requirements such as business expenses, monthly cost management, and many more related to this. Here is the demonstration of creating a business finance graph from this tool that shows dates on the x-axis of the graph (i.e. 1,2,3,4,5) and cost spent on those dates on the y-axis (i.e. 10k,20k,30k,40,50k) as shown:
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In this section, a discussion is on how companies are using generative AI in Finance. How AI is working for them and whether is it useful for them or not.
This company is located in Chicago, IL founded in 2004 and majorly works on machine learning, Analytics, and Financial Services. It has a total employee count of 1459 with a total count of 3 offices. It provides online financial services through its machine learning-powered lending platform. Enova uses smart computer programs and learning machines in its lending system to give good financial insights and decide if people can borrow money. You can visit their website from this Link.
This company is located in the heart of the Financial District, just one block from the New York Stock Exchange (New York, NY) founded in 2014 and majorly works on machine learning, AI, and Fintech. It has a total employee count of 1200 with a total count of 1 office. Ocrolus leverages AI and crowdsourced review to analyze documents with over 99+% accuracy. You can visit their website from this Link.
DataRobot company is located in Boston, Massachusetts founded in 2012 and majorly works on machine learning, AI, IT, and Software. It has a total employee count of 1610 with a total count of 1 office. DataRobot is the AI cloud leader, it provides machine learning software for data scientists, business analysts, software engineers and IT professionals. DataRobot helps financial institutions and business quickly build accurate predictive models that inform decision making around issues like fraudulent credit transactions, direct marketing, blockchain and more. You can find their website from this Link.
Zest AI company is located in Burbank, California founded in 2019 and majorly works on Machine learning, AI, Fintech, and Software. It has a total employee count of 109 with a total count of 1 headquarter. Zest AI is an AI-powered underwriting platform where companies assess borrowers with little to no credit information or history. The company reported that auto lenders using machine-learning underwriting cut losses by 23 percent annually, more accurately predicted risk and reduced losses by more than 25 percent. You can visit their website from this Link.
In conclusion, this blog describes about the importance of Generative AI in Business and Finance. Which generative AI tools can help in business and finance, what type of Business and Finance applications are made with the concern of Generative Artificial Intelligence, which companies use the AI & Machine Learning techniques in Finance all these are described in this blog.
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