01: How does Gen AI Impact Finance

Question 1

Why should we be aware of Gen AI

Answer 1

• 1/3 of organizations are using in at least one business function
• need to consider how gen AI can influence our potential finance careers

Question 2

How does Gen AI work

Answer 2

• creates content in response to user’s prompt
• uses algorithms to mimic the human brian’s learning and decision process

Question 3

Can Gen AI takeover humans

Answer 3

• Gen AI has made automative tasks much easier, so yes in that aspect
• Gen AI cannot replicate authencity, but only copy it
  Ex.
• when you write an email to show sympathy is not the same as you writing and Gen AI writing it
• you don’t get in touch with your emotions & don’t get why you feel that way
• the potential connection is gone
• no connection, struggle to understand, and less motivation
• example, connecting with partners, managers, peers

Question 4

How are Quantitative Traders and Hedge Funds using AI

Answer 4

1.algorithmic trading for long-short public equities

2. research and reporting

Question 5

AI impact on research and reporting

Answer 5

• analyze vast datasets
• generate insights from alternate data sources (news & earnings reports)
• create detailed financial summaries
  Key Point
• focus on strategy and decision-making

Question 5

AI impact on algorithmic trading for long-short public equities

Answer 5

• identify market inefficiencies
• predict stock movements
• dynamically adjust long and short positions based on real-time data and sentiment analysis

Question 6

How are Large US Banks using AI

Answer 6

1. chatbots to streamlines and ehance customer service
2. fraud detection

Question 7

How AI chatbots used

Answer 7

• handle routine customer inquirities
• account management
• financial advice
  –> reducing the need for human intervention

Question 8

How fraud detection was used

Answer 8

• analyze vast amounts of transactional data in real time
• identify unusual patterns & behaviours
• enables banks to respond quickly
  overall: reduce financial losses and improve overall security

Question 9

Why is AI a threat to security

Answer 9

• threat actors can quickly adapt and use it for harmful purposes

Question 10

Why do small businesses struggle to keep up with big businesses (AI)

Answer 10

• not sustainable to have the resources (internal, historical data, and expertise)
• require a cross-enterprise approach where technology, legal, and compliance teams work together

Question 11

How has AI shift the demand of skills

Answer 11

• seek communication, interpersonal, and team0building skills
• increase an opportunity to learn and develop (adapt to changing nature of their business with Gen AI)