ChatGPT and AI-based software pose opportunities and challenges to smart finance

ChatGPT-like artificial intelligence is a "game-changer" in smart finance, bringing both opportunities and challenges, finance and IT experts said in a forum held in Shanghai.

Services like ChatGPT, an AI language software, can be used to analyze financial data, generate financial reports, assist with financial forecasting and even become a new generation of "digital employee," experts and Shanghai-based chief financial officers (CFOs) told the forum.

The smart finance forum was held by Kingdee, a major Chinese IT service provider for smart finance and enterprise business capabilities (EBC) service.

Smart technologies including AI will reorganize financial management, influence corporate strategy and reshape the corporate value chain. The future of finance is transforming into management accounting, said Liu Qin, a professor at the Shanghai National Accounting Institute.

It will greatly improve work efficiency on paperwork for financial officers, said Jin Yuan, CFO of Shanghai Huifu Technology, who has tested ChatGPT for a while.

With AI and smart finance tools, CFOs will handle more businesses, covering IT and management functions that belong to other managers, said Fang Yaping, chief information officer of the Ping An Dianchuang International Finance Leasing Co.

ChatGPT is a "milestone" technology in the industry. Firms including Kingdee have to catch the opportunities to integrate AI services with current techs, said Deng Yongfu, vice present of Kingdee.

Kingdee has upgraded services to an AI-powered cloud service, which can become a "digital employee" for enterprise clients, said Deng, a veteran manager for Kingdee's big-scale enterprise clients.

CFOs also should consider the level of interaction they require with ChatGPT-like services.

Data security is always a key issue in China, with more policies and laws to protect business and national security and personal information.

Meanwhile, ChatGPT also has its shortcomings, as it's not always accurate and reliable. For example, some data generated by ChatGPT is out of date or without solid sources, which can't be accepted in finance, said Huifu CFO Jin.

To solve the problems, CFOs and IT managers should validate data and information with other sources and use multiple algorithms to cross-check the results, experts said.