AI - the end of the road for Financial Modellers? A year later
With the release of ChatGPT4o, I thought it would be a good time to revisit my post on the impact of AI on Financial Modellers.
Unbelievably it has been over a year since I wrote my original article:
AI - THE END OF THE ROAD FOR FINANCIAL MODELLERS.
A year ago, the discussions about the impact of artificial intelligence on jobs, and humanity as a whole had run to fever-pitch. It really seemed like everything was about to change; not just for Financial Modellers, but for the whole of humanity.
Goldman Sachs predicted that around 25% (300 million) of jobs in Europe and the US were at risk due to AI. The Wall Street Journal stated that “Accountants are among the professionals whose careers are most exposed to the capabilities of generative artificial intelligence”.
And guess what?
A year has passed and almost nothing has changed in the way we live, work or build financial models!
The main changes in Financial Modelling this year have not come from AI, but from the application of LAMBDA and dynamic array functions (special mention to the incredible work carried out by Craig Hatmaker on 5G).
So, a year on, does AI mean it’s the end of the road for Financial Modellers?
No! As I wrote a year ago, it seems that AI will be most successfully applied to the build, review, scenario and insights disciplines at some stage, but I haven't seen much movement in these areas over the last year.
I actually think it's an exciting time for us modellers.
Most modellers are still just trying to understand the power of Excel Tables, Power Query, Dynamic Arrays and LAMBDA. This is where the development opportunities lie, certainly for the next couple of years.
I really can't see AI impacting financial modelling for some time.
How can Financial Modellers stay ahead of the curve?
With this in mind, how do we, as Financial Modellers, make sure that we stay relevant in this ever-changing world?
The World Economic Forum believes that AI will lead to long-term job growth and that re-skilling and up-skilling will be key. As Financial Modellers, we need to embrace that innovation and the changes that AI and other developments will bring.
Those that learn and adapt will continue to thrive.
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