Dark
Light

Data-driven accounting: Revolutionizing finance in the Gen AI era

1 min read
76 views

TLDR:
– Trustworthy accounting in uncertain times requires accurate, actionable, and timely data
– Data-driven insights can power a forward-looking approach to accounting for insurers, providing opportunities for growth and differentiation while enabling better decision-making

In a world increasingly dominated by data and technology, accounting practices are evolving to harness the power of artificial intelligence (AI) and generate more valuable insights. According to BlackRock executives, data is key for insurers, as it serves as the “raw material for competitive innovation, risk management, and decision-making power.” By leveraging platforms like BlackRock’s Aladdin, insurers can streamline investment operations, manage change more effectively, and ultimately deliver better investment outcomes.

Institutional investors, in particular, have the opportunity to become storytellers of data, moving beyond being mere fiduciaries to providing valuable analysis and insights to internal stakeholders, regulators, and others. This shift from fiduciary to storyteller to trusted business partner allows asset managers to have a seat at the table and contribute unique insights on trends and anomalies.

Decision-making power is not solely dependent on the confidence in the data, but also on the strength of the Investment Book of Record (IBOR), the alignment with the Accounting Book of Record (ABOR), and the ability to report effectively. AI has the potential to play a significant role in these areas, but many organizations are ill-prepared to leverage AI and emerging technologies due to a lack of scalable and efficient ecosystems.

However, it’s important to note that AI tools should augment rather than replace human accountants and asset managers. Tools like BlackRock’s eFront Copilot, which uses generative AI to transform data into investment intelligence, are meant to make professionals’ lives easier and facilitate further efficiencies and innovation.

In a survey conducted as part of the Global Insurance Report, 89% of respondents indicated plans to increase allocations to private markets. To successfully implement these changes, insurers need a common data language and a trusted tech ecosystem that liberates decision-making from outdated legacy systems. By streamlining investment operations and better managing change, insurers have the opportunity to unlock new possibilities and unify the investment management process. Ultimately, the decision-making power for both insurers and accountants lies in the data.

Overall, the evolving role of accounting in a Gen AI world is centered around harnessing the power of data, leveraging AI technologies, and providing valuable insights to drive growth and improve decision-making in uncertain times. Trustworthy and forward-looking accounting practices are essential for insurers and other financial institutions to thrive in a rapidly changing landscape.

Previous Story

What Is Online Pawnbroking?

Next Story

“CFO Amir Weiss offloads 31K+ shares of Teva Pharma Co.”

Latest from News