Our prior article in this series was all about getting started with ChatGPT or Copilot. Now that you are equipped with the tools, we will learn about the art of AI prompting in finance.
While prompt engineering has little to do with the traditional world of engineering, it is a role that is widely regarded as one of the most sought-after skills for companies seeking to leverage the potential of AI. The role is crucial for ensuring that AI models yield dependable and applicable results.
However, the designation itself can be somewhat deceptive. Prompt engineering is less about technical mastery and more about the art of communication. Prompting is essentially a communication process; a dialog between the user that provides the prompt and the bot that interprets that prompt. You inform your AI of its tasks and desired outcomes, and after it produces valuable responses, you provide further directions.
That is good news for those in non-technical positions, including financial roles. Just as anyone can learn and improve their communication skills, anyone can learn the art of prompt engineering. It involves providing clear instruction and direction to the AI bot regarding not only the specific request but also the desired outcome. Effective prompts include context and clearly expressed details.
If you ever played some version of the Exact Instruction Game (like this hilarious build a PB&J video), then you have an idea of how important it is that each step be precisely defined. That same approach is used in prompt engineering. Despite all its marvel, AI is still a bot, and its ability to execute successfully is limited by the information it is fed. While it is true that these models are already well-trained with a good foundation of developed capabilities, what they need now, in order to perform optimally, is clear instructions and information.
Examples of AI Prompting in Finance
Data Analysis
If you are a fan of the TV show Suits, you may recall Katrina’s seemingly impossible assignment to evaluate the performance of 50 associates and recommend the ten least efficient employees that would ultimately be fired. Although the outcome proved to be flawed, the scenario illustrates AI’s ability to analyze massive amounts of data, in ways that are faster and more complex than humanly possible. (Watch the scene here.)
For a more realistic and detailed step-by-step illustration, let’s look at a scenario that may apply to a specific area of financial reporting.
Want to Learn More About AI in Finance?
Compliance and Regulatory Reporting
AI can also be leveraged to ensure all financial reporting complies with new regulations under the International Financial Reporting Standards (IFRS) or other relevant standards. An example of the dialog is provided below.
Initial Prompt: “Review the latest financial statements and flag any entries that might not comply with the new IFRS standards regarding revenue recognition and lease accounting.”
Based on the results delivered, you can ask follow-up questions that probe for more details.
Follow-up Prompt: “Provide a detailed explanation of non-compliant entries and suggest necessary adjustments.”
Follow-up Prompt: “Generate a compliance report summarizing all findings and corrective actions for senior management review.”
Usage:
- Feed the AI detailed transactional data and specific sections of the IFRS standards.
- Use the AI-generated report to make necessary adjustments and prepare for audits.
- Update the prompt regularly as new regulations come into effect to ensure continued compliance.
Everything should begin with a clear objective, along with the information and details needed to be successful.
AI Roles in Finance
As shared in this AI eBook, new technologies like AI are not intended to replace accountants, but rather enhance their roles. Embracing AI technology creates opportunities to learn and grow, and position both your company and your employees for optimal success in a changing economy.
When considering the right fit to take a leadership role in your company’s ability to leverage AI, start with an existing team member who already has the necessary experience for this role. Traits for this individual would typically include:
- Someone well-versed in the process and keenly aware of all exceptions.
- They are problem-solvers, capable of handling unforeseen issues.
- They have strong linguistic skills.
- They are creative, both in terms of writing and thinking.
- They are not coders or developers, but they do have a passion for new technologies along with the desire to learn and grow.
An accounting unicorn? Perhaps. But finding the right fit is essential for leading your finance team into a new era of productivity.
This article is part of a series authored by FYIsoft, Inc.