Last Updated 4 days by Emily Standley-Allard

The advent of AI (artificial intelligence) has transformed every industry and finance is no exception. From generating complex reports to explaining jargon, discover how AI like ChatGPT can transform finance operations.

Right after its launch in 2022, ChatGPT by OpenAI is emerging as a game-changer in every industry including financial operations. This leading-edge technology possesses the ability to generate text and communicate like a human. This innovative large language model offers a plethora of opportunities to individuals and professionals looking to optimize their financial operations. 

Navigating financial intricacies can overwhelm any individual. Market trends, investment options, and other financial jargon might feel like a foreign language, especially for those who don’t possess extensive knowledge in the field.

Using the ChatGPTs potential, users can streamline their tasks, gain valuable market insights, and make informed financial decisions.

Whether you are a budding entrepreneur, a seasoned investor, or someone who is simply seeking a way to manage their finances effectively, ChatGPT is what you need. It can adeptly answer your questions in clear language, simplify complex info, and allow you to make informed decisions.

In this post, we will discover the 7 best ways to use ChatGPT for finance operations. By the end of this post, you will gain the confidence you seek to attain your financial goals.

Let’s get started!

ChatGPT Statistics and Facts You Should Know in 2024

Understanding AI statistics and trends is necessary to know what is happening currently and what can be expected in the future. The following are a few stats and facts about ChatGPT that you should know.

  • Within two months of ChatGPT’s launch over 100 million active users.
  • ChatGPT gets over 100 million queries every day.
  • It is trained on around 570GB datasets, including books, web pages, and other information sources.
  • According to OpenAI, around $700000 is spent every day to run ChatGPT.
  • ChatGPT gets 1 billion views every month.
  • More than 49% of companies use ChatGPT and 30% are planning to use it in the future.
  • ChatGPT is capable of improving customer satisfaction by 20%.
  • 59% of males and 41% of females use ChatGPT.
  • Over 41% of users of ChatGPT are from the United States of America.

So, these were some stats and trends about ChatGPT, let’s take a look at the best methods to use this AI tool for finance.

Here is the list of 7 ways to use ChatGPT for finance: 

  1. Automating Financial Tasks 

From generating finance reports to analyzing data, the world of finance is full of repetitive tasks that consume a lot of valuable time and effort. These tasks not only keep you away from strategic thinking but also impact your decision-making skills. Here, ChatGPT can automate most financial tasks. This cutting-edge tool not only streamlines your work but also frees up your time which can be dedicated to vital things. 

You can leverage ChatGPT for financial tasks as follows:

  • Data Analysis: Understanding massive amounts of financial data can overwhelm any individual. ChatGPT can be trained on the financial data format. This AI tool can identify patterns, analyze inconsistencies, and even provide forecasts. You can focus more on the insights to analyze it even further.
  • Report Generation: Compiling a report manually can be tedious and time-consuming. Here, you can feed your financial data such as sales, income, expenses, etc. into ChatGPT to generate concise reports. ChatGPT is adept at analyzing the data and generating concise and clear reports with key trends and valuable insights.
  • Creating Financial Statement: Creating balance sheets, income statements, and other financial statements is time-consuming and monotonous. Using ChatGPT you can automate the entire process of statement generation based on the current information that you provide. 
  1. Financial Research and Analysis

As financial space consistently changes, you need to stay informed about all the related shifts to make a sound decision. However, in-depth analysis and research are both time-consuming and complex processes. Here, ChatGPT can be your personal financial assistant to get these tasks done. 

You can leverage ChatGPT in financial research and analysis in the following ways:

  • Investment Opportunities: Looking at the overwhelming options in investments, picking the most promising one often gets tough. Here, ChatGPT can identify sectors and companies matching your investment portfolio. It thoroughly analyzes your financial data based on your risk tolerance and growth potential and offers the best-suited investment opportunities.
  • Market Research: ChatGPT can be your secret weapon in analyzing huge financial data if you want to save time from manual back and forth through endless information. You just need to put specific keywords on ChatGPT, it will analyze news articles, financial data, industry trends, and summarize key insights. 
  • Financial Trends and News: In the finance world, keeping track of the latest market trends and financial news is not only crucial but has to be done constantly. Here, you can set up ChatGPT to track relevant financial news sources and get short summaries on the most vital financial news that will impact your investments.
  • Competitor Analysis: By putting information about your competitors on ChatGPT, you can gain a competitive edge. This AI tool can analyze huge amounts of financial statements, marketing strategies, and news articles and provide valuable insights into your competition. 
  1. Investment Strategies 

Creating a fruitful strategy needs deep and careful consideration of several aspects including investment goals, risk tolerance, market growth, and trends. Although ChatGPT cannot provide you with guaranteed returns on your investment, it can be a valuable tool to improve the entire decision-making process. Here is how:

  • Risk Assessment: Gaining a deep understanding of your risk tolerance is crucial in investments. Here, ChatGPT can analyze your risk profile and financial situation. After examining, it suggests investment strategies matching your risk tolerance and comfort level.
  • Diversification of Portfolio: Many experts have said ‘Don’t put all your eggs in one basket’ when you are investing your money. Therefore, building a diversified portfolio is imperative to minimize the risk. Here, ChatGPT can analyze market trends and other historical data and recommend sectors and classes that enhance your current portfolio. 
  • Testing Investment Strategies: Before investing your money, evaluation of investment strategy performance is a smart move. Here, ChatGPT can be your personal financial assistant. It analyzes both current and historical marketing conditions to show how a portfolio can perform under a particular strategy. 
  • Monitor Performance: You can set up key tracking metrics on ChatGPT and get notified when any changes occur. This way you can make adjustments whenever it is necessary and stay on top of your investment portfolio performance with this AI tool.
  1. Simplifying Financial Jargons

The finance world and its terms can scare off anyone, especially those who don’t have extensive knowledge. It is filled with complex concepts and terms that can leave anyone lost. This can stop you from making informed financial decisions. Luckily, ChatGPT can help you with each financial jargon that can be a barrier to making the right decisions. The following pointers show how:

  • Simplified Definitions: There will be times when confusing financial terms and phrases will overwhelm you. Here, you can simply put your question to ChatGPT to get clear and concise answers. This AI tool is adept at breaking down complicated financial jargon into easy-to-understand language.
  • Interactive Learning: You can use ChatGPT for interactive learning as well. Ask any financial concept and get easily consumable text in a human-like interaction. You can also generate practice questions to test your understanding. This way you can learn and test yourself on financial jargon more effectively and engagingly.
  • Translation: Financial statements, reports, and news articles are filled with jargon. If you get confused anywhere, ask ChatGPT to translate all of it for you. Get your answer in the most simplified way that highlights the key points. This way you can grasp the meaning of financial terms without getting overwhelmed.
  • Identifying Jargon: If you are unsure of any specific financial terms in the report or documents, just copy and paste them into the ChatGPT. It will provide a clear and concise explanation of the term, helping you understand the context better.
  • Create Glossary: With ChatGPT, you can create a glossary of financial terms that you have come across frequently. With this personalized glossary, you can quickly understand definitions and recall the terms easily. 
  1. Financial Planning

Without a clear understanding, navigating through the intricacies of personal finance can feel a bit intimidating. Here, ChatGPT can become your financial advisor who can help you create a plan matching your unique needs and goals.

  • Managing Debts: Debt can be repaid using different approaches like snowball (paying small debts), avalanche (paying off debts with highest interest), etc. ChatGPT can explain these terms in the simplest way to help you pick the most suited one. This AI tool can help you approach creditors in the right way for low interest rates. ChatGPT can set realistic goals to repay debts strategically and track your progress.
  • Budgeting and Goal Setting: ChatGPT can craft a personalized budget for you, just tell it your income and spending habits it can identify areas to cut back, categorize expenditure, and suggest the most-suited budgeting strategy. Whether it is a down payment for a house or a dream vacation, this AI tool also helps you define and prioritize your financial goals into actionable steps.
  • Personalized Financial Advice: ChatGPT needs information on your income, debts, expenses, and financial goals. Once you share the data, it analyzes your financial situation and finds out areas that require improvement. Based on your input, it can provide budgeting strategies, appropriate investment options, and prioritize debt repayment plans. 
  • Financial Education: ChatGPT can break down the most complex financial information into easy-to-understand terms for all users. You can attain financial education most interactively. Ask questions and get simple explanations in real time. From basics of budgeting to intricated investment planning, ChatGPT enables users to explore and learn a range of financial topics.
  1. Assess Current Investment

ChatGPT is a valuable tool for assessing your current investments. It gathers information about your investments like stocks, bonds, etc. then analyzes the past performance of each and generates reports on metrics like risk factors and returns.

ChatGPT can quickly scan current financial news, articles, and reports related to your investment and highlight crucial information that might impact their value. This AI tool examines the asset allocation in your portfolio and identifies potential risks, areas of concern, and suggests improvements as well.

This AI tool can compare your investment portfolio to appropriate benchmarks to help you analyze its effectiveness overall. ChatGPT can analyze current market trends and recommend investments that match your risk tolerance and goals.

  1. Investor Communications

From improving clarity and streamlining workflows to fostering better engagement, ChatGPT is a valuable asset in the investor communication world, here is how.

  • Clear and Concise Communication: As creating press releases,  annual reports, or presentations for investors is time-consuming, ChatGPT can generate clear and concise drafts for you.
  • Response to FAQs: This AI tool can be trained on your company’s past financial reports and investor communication to generate responses to FAQs (frequently asked questions) from investors, saving professionals time to focus on more complex questions.
  • Market Analysis: You can train ChatGPT on huge amounts of financial data, analyst reports, news, and social media data. This helps this tool in analyzing market sentiment for your company. It gives you valuable insights to create investor communication that resonates with your audience.

Concluding Thoughts

The future of finance is evolving at a rapid pace and navigating financial complexities can be overwhelming for any individual. Here, AI tool like ChatGPT not only simplifies the intricate financial information but also empowers you to make informed decisions.

From automating financial tasks, in-depth market research, and crafting investment strategies to simplifying jargon, assessing current investments, and helping with investor communication, ChatGPT is a valuable asset to reshape your financial processes.

However, even with an immense potential ChatGPT has limitations. Therefore, careful consideration and human expertise are required to make an informed financial decision.

Follow me for more ways to increase your revenue and grow your business online!