Inform Magazine

CAN AI TAKE THE PLACE OF PEOPLE?

you prepare for meetings. It hasn’t created a massive void of redundancies.”

AI is unarguably amazing. In corporate finance, automated transactions and processes free up humans to focus on strategic and compliance roles. For leaders in corporate finance, the implementation of AI creates opportunities to increase efficiency, reduce costs and create new services which are otherwise out of reach, and consistently achieved without the need for people management. “I just don’t believe you can sell something without people - the experience between buying something online and buying something in person, especially if it’s something you care about. “I think at some point in the future, some of the laborious typing we do probably won’t happen. You’ll have more automation around financial modelling and aspects of design. I think there will be a slickening of the system. “What nobody talks about and is actually far more interesting than AI is Web 3 and blockchain and how that can impact the deals market in terms of building SPAs. “But at the core of it, people still buy from people. For example, if I had an employment issue I’d always still go and talk to someone because I wouldn’t trust a computer knew the right answer. I think that will always exist.” The earliest fear of AI was predicted decades ago, and the concern remains provident today: will AI replace humans in the workplace, and what are the consequences of that? After all, AI is seen as more efficient and can perform daily tasks better and faster than humans, such as those found in accountancy. Fortunately, in corporate finance, the use of AI is likely to complement manual work, and serve humans in this respect rather than replace roles. It’s through this comforting realisation that we see the limitations of AI and can perhaps discredit some of its impact on corporate finance. Another speaker at the event attended by KBS shared their thoughts on the matter: “In terms of its lifecycle, AI has gone from being like a small child with limited use in terms of the business world and is now in its adolescent years. “I don’t know how long it will take to reach its grey-haired years, but I think it’s complementary and supports us in the day job because it gives advice faster and better when However, a speaker at a corporate finance event attended by KBS told the audience: SO WHERE DO WE STAND WITH AI NOW?

Another analogy was that “a technology expert has compared AI currently to being like one of the brick-sized mobile phones in the 1980s (to highlight the scope for development).” In business sales, AI’s automation of essential but repetitive and laborious manual tasks can free up a transaction adviser’s time for more customer-focused attention. AI can assist sales teams in understanding client needs and preferences, and predict closing likelihood. David Gardner, Corporate Finance Managing Director, commented: “There’s a long way to go before there is the level of trust and confidence with AI that is currently present in what is a highly personally and professionally managed service. “Currently, AI is useful to pull information together in a meaningful way on a timely basis. However, it still needs verifying and checking to ensure the completeness and accuracy of the information contained. “AI concentrates on information that is publicly available or published online, whereas our niche client base can be highly confidential in nature and each has bespoke requirements and nuances that can only be determined through personal relationships and the dedication of time and resources to those clients. “However, as AI develops and the sources of information become more varied, the potential for AI will no doubt grow and become a more viable option for everyday use, albeit never replacing the highly relationship-based approach that drives success within the corporate finance sector.” Mughees Saleem, Corporate Finance Director, added: “As with any new technology, there will be benefits and drawbacks from the application of AI within the corporate finance deal-making process. “On one hand, AI can be leveraged from a market research/data collation perspective, as AI chatbots can be much more efficient at collating useful information and presenting it in an easy-to-digest format. “On the other hand, the essence of dealmaking still requires the building of personal relationships with clients and buyers, and the human aspect of leveraging these relationships to get deals across the finishing line cannot be discounted in the age of AI.” And what do KBS Corporate experts think of AI’s impact on all things corporate finance?

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