How can GenAI shape the future of your finance team in Asia?

The dual role of finance: gatekeeper and innovator

The finance department has long been the gatekeeper of an organisation’s resources, ensuring alignment with short-term needs and long-term business goals. In Asia’s fast-paced markets, where economic fluctuations and digital transformations are constant, finance teams are increasingly tasked with evaluating new technologies like AI. Key considerations include ensuring a solid return on investment (ROI) and managing associated risks.

The price of AI: making informed choices

AI adoption requires a nuanced understanding of its costs and functionalities. For example, while advanced large-language models (LLMs) such as GPT-4 offer incredible capabilities, they can cost 10–15 times more than models like GPT-3.5. For businesses in Asia, where cost-consciousness often aligns with innovation, testing less expensive models for specific use cases is a prudent approach.

Furthermore, the rise of regionally optimised, smaller AI models tailored to specific industries or needs—such as fintech solutions in Singapore or e-commerce analytics in China—offers cost-effective alternatives. For finance teams, determining the best-fit model for each scenario is critical to maximising value while managing costs.

Navigating risks in the AI landscape

In finance, risk management takes on a new dimension with AI. Beyond financial risks, AI introduces challenges such as:

• Data security: Safeguarding sensitive information is vital, especially in regions like Hong Kong and Singapore, known for stringent data protection regulations.
• Ethical concerns: Using AI-generated outputs without proper attribution or consent can pose legal and reputational risks.
• Quality assurance: Ensuring models are well-trained, regularly tested, and monitored is essential to avoid inaccuracies.

How GenAI is transforming finance in Asia

Across Asia, businesses are integrating GenAI into their finance operations, leveraging its capabilities to streamline processes, reduce costs, and improve accuracy. Some of the key advantages include:

1. Time efficiency: Automating repetitive tasks such as invoice processing or data entry allows finance teams to focus on strategic priorities.
2. Cost optimisation: Identifying inefficiencies and unnecessary expenditures across supply chains helps businesses remain competitive in markets like Malaysia and Indonesia.
3. Enhanced forecasting: Automated planning tools reduce the likelihood of human error, providing more reliable financial projections.

Good governance: the cornerstone of AI success

In dynamic economies like China or Singapore, where rapid innovation must balance with regulation, good governance is pivotal for AI adoption. CFOs and CIOs must co-create a framework based on the principles of people, process, and technology:

• People: Address user needs with tailored training and experimentation environments to prevent unauthorised tool usage.
• Processes: Define clear guidelines on AI ownership and application. Appointing ‘AI champions’ in departments ensures alignment with organisational goals.
• Technologies: Robust data access, AI model selection, and monitoring tools are essential for effective governance and risk mitigation.

From experimentation to industrialisation

Deploying AI follows a structured path to ensure safe and scalable implementation:

1. Experimentation: Teams are encouraged to explore AI tools in sandbox environments, particularly in highly regulated regions like Hong Kong.
2. Development: Controlled access to production data allows teams to refine use cases under IT and finance oversight.
3. Industrialisation: Before scaling, use cases undergo rigorous testing to ensure reliability, repeatability, and compliance with local regulations, such as Malaysia’s PDPA or China’s CSL.

Shaping the future of finance in Asia

As AI and GenAI continue to revolutionise the financial sector, finance departments in Asia are uniquely positioned to lead the charge. By ensuring good governance, optimising costs, and embracing innovation, they can unlock AI’s full potential while mitigating risks. The result? A future-ready finance function capable of navigating Asia’s diverse and dynamic markets with confidence.