Finance Monthly - August 2023

ChatGPT and generative AI: Liberating finance personnel The advent of ChatGPT and generative AI signifies a profound transformation within corporate finance departments. These technologies are currently being implemented in the hedge funds Man Group and Citadel. As reported by Bloomberg, employees at these companies report using ChatGPT to create and edit code, parse research, and help with other forms of mundane work. Because ChatGPT is an opensource model, privacy and security concerns limit its application for trading and investing tasks, but financial experts are finding it helpful in improving efficiency in other areas. Another manual task that generative AI can handle well is the know your customer (KYC)/ anti-money laundering (AML) processing. By leveraging the capabilities of ChatGPT, banks can automate and enhance these critical processes. Through the analysis of vast amounts of customer data, including personal information and transaction history, ChatGPT can effectively identify potential compliance issues, aiding in the mitigation of financial crime risks and ensuring regulatory compliance. ChatGPT also has the ability to verify customer identity, cross-reference customers against sanction lists, and flag suspicious transactions. This integration of AI technologies reduces the likelihood of errors and improves the overall accuracy of compliance checks, enabling banks to operate more efficiently and effectively in their efforts to combat financial crime. Finance Monthly. Special Feature 15

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