How to Improve Financial Decision-Making With AI

What happens if AI makes the wrong call? - This is a scary question, with an easy answer. Yes, we’re all excited about AI’s potential but what if it takes the wrong decision, one which can impact millions of dollars or thousands of lives - we have to talk about accountability. It’s not about: Complex algorithms. Elaborate protocols. Redtape. The solution is rooted in how AI and humans work together. I call it the 3A Framework. Don't worry, this isn't another buzzword-filled methodology. It's practical, and more importantly, it works. Here's the essence of it: 1. Analysis: Let AI do the heavy lifting in processing and analyzing vast amounts of data at incredible speeds. This provides the foundation for informed decision-making. 2. Augment - This is where the magic happens. Your knowledge workers, with all their experience and intuition, step in to review and enhance what the AI has uncovered. They bring the contextual understanding that no algorithm can match. 3. Authorization - The final step is establishing clear ownership. No ambiguity about who makes the final call. Let your specific team members have explicit authority for decisions, ensuring there's always direct accountability. This framework is copyrighted: © 2025 Sol Rashidi. All rights reserved. This isn't just theory - it's proven in practice. In one financial institution, we built a system for managing risk decisions. AI would flag potential issues, experienced staff would review them, and specific team members had clear authority to make final calls. We even built a triage system to sort real risks from false alarms. The results? - The team made decisions 40% faster while reducing errors by 60%. - We didn't replace the workforce; instead, we empowered the knowledge workers. - When human wisdom and AI capabilities truly collaborate, the magic happens. Accountability in AI is about setting up your team for success by combining the best of human judgment with AI's capabilities. The future is AI + human hybrid teams - how are you preparing for it?

Update on AI and Decision-Making from the Harvard Business School: “AI can help leaders work faster, but it can also distort decision-making and lead to overconfidence. If you’re integrating AI tools into forecasting or strategy work, use these safeguards to stay grounded. 1) Watch for built-in biases. AI presents forecasts with impressive detail and confidence and tends to extrapolate from recent trends, which can make you overly optimistic. To counter this, make the system justify its output: Ask it for a confidence interval and an explanation of how the prediction could be wrong. 2) Seek peer input. Don’t replace human discussion with AI. Talk with colleagues before finalizing forecasts. Peer feedback brings emotional caution, diverse perspectives, and healthy skepticism that AI lacks. Use the AI for fast analysis, then pressure-test its take with your team. 3) Think critically about every forecast. No matter where advice comes from, ask: What’s this based on? What might be missing? AI may sound authoritative, but it’s not infallible. Treat it as a starting point, not the final word. 4) Set clear rules for how your team uses AI. Build in safeguards, such as requiring peer review before acting on AI recommendations and structuring decision-making to include both machine input and human insight.”  Posted July 11, 2025, on the Harvard Business Review’s Management Tip Of The Day. For more #ThoughtsAndObservations about #AI and the #Workplace go to https://lnkd.in/gf-d2xXN #ArtificialIntelligence #DecisionMaking

AI just made its move into financial services. Anthropic announced a new tailored offering: Claude for Financial Services. Let’s break it down. • Claude connects directly to your internal data stack: Snowflake, Databricks, S&P, PitchBook, FactSet, and more. • It’s not a consumer chatbot. It’s a task-specific analyst, tuned for high-stakes environment. • It doesn’t train on your data. Privacy and compliance are foundational. • Oh yeah, and it can do Monte Carlo simulations. Where it creates value: • Investment teams can analyze portfolios, trends, and risk exposures in real time, without toggling across 12 dashboards or waiting on data prep. • Compliance and audit functions can use Claude to summarize regulatory updates, track adherence, and flag anomalies, before the next quarterly fire drill. • Client-facing teams can generate custom pitch decks, scenario models, and account insights on demand, without pulling an associate off a deliverable.    For CFOs • Increase visibility into financial drivers by asking natural-language questions across systems and models • Pressure-test scenarios in real time using up-to-date financial and macro inputs • Generate investor-ready insights faster and more consistently For FP&A Transformation leaders • Automate recurring analysis cycles such as forecast variance, budget rollups, and board package creation • Embed Claude into planning workflows to assist with driver modeling, commentary, and contextualization • Scale insight delivery without increasing headcount For GenAI Transformation leads • Operationalize AI within high-stakes workflows without reengineering existing systems • Launch proof-of-concepts with measurable productivity impact in under 90 days • Build a business case grounded in time saved, accuracy improved, and risk reduced Real results: • AIG accelerated underwriting by 80% while increasing data quality from 75% to 90% • Norway’s NBIM saved over 213,000 hours in a single deployment with a 20% productivity lift across finance teams If you’re leading a team inside a Fortune 500 and wondering where to start: Identify high-friction, high-repetition tasks in finance, ops, or risk. Don’t wait for a firm-wide transformation plan. Start small with one workflow Claude could automate or accelerate. Pilot. Measure. Expand. ----------------------- Follow me for GenAI Transformation, Training, and News.

AI agents will revolutionize decision-making in 2025. Here's how: 🚀 1. Supercharged scenario planning AI simulates thousands of "what-if" scenarios in minutes, empowering leaders with: • Comprehensive views of potential outcomes • Deep insights into complex market dynamics • Ability to rapidly stress-test strategies 2. Real-time market intelligence 🌐 AI agents continuously monitor global trends and competitor moves, delivering: • Up-to-the-minute insights on market shifts • Early detection of emerging opportunities • Proactive risk management strategies 3. Bias detection and mitigation 🎯 AI helps identify unconscious biases, enabling: • More objective, data-driven choices • Increased diversity in decision outcomes • Improved long-term strategic alignment The result? • Accelerated decision-making cycles • Enhanced confidence in strategic choices • Greater adaptability to market changes But here's the key: AI amplifies human wisdom; it doesn't replace it. The most effective leaders blend AI-powered insights with human intuition and experience. Practical steps to integrate AI into your decision-making: 1. Start small: Pilot AI in one key decision area 2. Educate your team: Invest in organization-wide AI literacy 3. Partner wisely: Collaborate with reputable AI solution providers 4. Measure impact: Track KPIs before and after AI implementation As we navigate this AI-enhanced landscape, I'm curious: How are you balancing AI insights with human judgment in your decision-making? Share your experiences below! #AIStrategy #BusinessIntelligence #LeadershipInTech