FridayOL

For years, I've worked alongside finance professionals – CFOs and teams – who thrive on precision, meticulous risk assessment, and the comfort of predictable outcomes. That’s the bedrock of sound financial management, ensuring businesses stay afloat and navigate uncertainty. But in today's rapidly evolving landscape, clinging solely to that traditional approach could mean missing out on a monumental shift – the rise of agentic artificial intelligence (AI).

Let's be clear: this isn't about replacing skilled finance professionals. It's about augmenting them, empowering them with tools that redefine value creation in the 2020s and beyond. Agentic AI represents a significant leap forward from the rule-based automation we've seen in the past. It’s AI that can not only execute tasks but also reason, plan, and act autonomously within defined parameters. Think of it as a highly intelligent, adaptable assistant capable of tackling complex financial challenges without constant human intervention.

So, what does agentic AI in finance actually look like?

• Intelligent Forecasting & Scenario Planning: Forget static spreadsheets. Agentic AI can analyse vast datasets, identify emerging trends, and generate dynamic forecasts, allowing businesses to proactively adapt to changing market conditions. It can simulate various ‘what-if’ scenarios with incredible accuracy, helping you make informed decisions under pressure.
• Automated Financial Reporting & Compliance: Spend less time on manual data entry and reconciliation. Agentic AI can automate reporting processes, ensuring accuracy and compliance with regulatory requirements – freeing up your team to focus on strategic initiatives.
• Enhanced Risk Management: Beyond traditional risk models, agentic AI can identify subtle patterns and anomalies that might otherwise go unnoticed, providing early warnings of potential threats and opportunities.
• Optimized Investment Strategies: AI can analyze market data, identify investment opportunities, and even execute trades – all within pre-defined risk parameters and ethical guidelines.
• Personalized Financial Advice (for Businesses): Imagine AI-powered tools that can provide tailored financial advice based on a business’s unique circumstances and goals.

The Evolution, Not Revolution, Approach

The key here is evolution, not revolution. Introducing agentic AI doesn’t require a complete overhaul of your existing systems. It’s about strategically integrating these tools into your workflow, starting with pilot projects and gradually expanding their use as your team gains experience and confidence. Think about starting with automating a specific, repetitive task or using AI to improve the accuracy of your forecasting.

Why New Zealand Businesses Need to Pay Attention

New Zealand's business environment is increasingly competitive. Businesses that embrace innovation and leverage cutting-edge technologies like agentic AI will be best positioned to thrive. Ignoring this trend is a risk – a risk of being left behind. It’s time for Kiwi businesses to explore the potential of agentic AI and start planning for the future of finance.

Don't let the fear of the unknown hold you back. Agentic AI isn't a replacement for human expertise; it's a powerful tool to amplify it, drive efficiency, and unlock unprecedented value.