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Generative AI plays a role in everyday finance

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Generative AI plays a role in everyday finance

Generative AI technologies like ChatGPT and Bard aren’t the end of the world, as sci-fi antagonists may make them out to be. But they’re not demure wallflowers, either. The truth exists somewhere in between, leaving CFOs with many questions but few answers on how to integrate these game-changing tools to maximize efficiency, accuracy and insight into everyday finance and accounting.

First and foremost, it’s important to understand what generative AI is and isn’t. No AI can think or emote like human beings, at least not yet. Instead, when you type a question into ChatGPT’s prompt, it strictly uses mathematics and probability to respond, tapping into a massive reservoir of data to arrive at the answer that’s most likely correct.

Therefore, generative AI is simply an artificial intelligence trained to generate new data based on existing data. It’s a useful assistant, not a sentient being, and most beneficial when it’s helping a finance organization streamline workflows, optimize processes, and improve business insights. Ultimately, ChatGPT can help teams improve, not replace them, and that’s a critical distinction that too often gets buried in the hype.

Empowering accounting and finance with generative AI

The real question CFOs should be asking is how they can use generative AI tools to create new value, either by freeing up time for team members, generating deeper insights, or both. At the individual level, AI excels in quickly handling tedious yet important daily tasks.

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Financial report creation: Accounting professionals no longer have to wade through endless stacks of spreadsheets for data. Generative AI can speed up the preparation of financial reports by swiftly analyzing data sets, freeing your team to deliver more value-added tasks.

Data analysis: Generative AI can then dive deeper into these datasets, pulling out valuable patterns and anomalies that would otherwise go unnoticed. Further, it can significantly enhance decision-making efficiency and impact by eliminating common bottlenecks like manual analysis and human error.

Writing and communication assistance: Many accountants look at composing emails and other important documents as a necessary evil that costs precious time they could better use elsewhere. ChatGPT, Bard and similar tools can simplify copywriting and editing tasks, increasing productivity while still ensuring clear communication.

Improving business functions with generative AI

While individual productivity benefits are a good start, bigger gains lie in generative AI-enhanced business processes:

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Financial modeling and analysis: In just a few seconds, generative AI can handle complex financial calculations, offering new levels of efficiency and accuracy for FP&A teams.

Predictive analytics and process optimization: Generative AI can dive into historical data, tease out trends, and guide laser-focused forecasting and planning. It can also refine and develop new ways to streamline operations, improving process automation and decision-making capabilities.

Anomaly and error detection: AI can spot and rectify hidden issues quickly, improving financial reporting and compliance, reducing the risks of human error, and helping to optimize cash flow and revenue management.

Vendor evaluation: A tool like ChatGPT can simplify and streamline the vendor selection process, comparing strengths and weaknesses of different software solutions. The result is a far less daunting, more efficient and comprehensive due diligence process.

Steps for implementing generative AI

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Of course, new technologies always look great on paper. The rub is actually implementing and integrating them, both areas where a handful of simple best practices can help CFOs quickly deploy these innovative tools.

DIY or third-party: Some companies have sufficient in-house skills to identify potential AI use cases and implement them accordingly. Others are better off partnering with experienced external consultants to lead the AI charge, often saving time and money along the way. It’s up to the individual CFO to determine which route is best for their team and enterprise.

Launch testbed projects: Pilot projects allow leadership to test different strategies and technologies on a small scale, providing insights for larger rollouts.

Create a mature data strategy: Generative AI should fit into an inclusive data strategy that highlights a firm’s most valuable asset — its data. When leveraged correctly, AI-driven data business information can generate precious insights, streamline processes, and incentivize innovation.

Upskilling a team: With generative AI playing an increasingly crucial role, CFOs should consider their team’s skill level. Upskilling in data analytics, critical thinking and AI understanding should be top-of-mind when hiring new talent. Going forward, AI prompt engineering is an area where the right talent can be a significant competitive advantage.

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The AI revolution has begun

Generative AI isn’t just knocking on the CFO’s door. It’s inside the building, waiting to go to work. And while it may present some obstacles in the short term, its long-term potential is unprecedented. As usual, it’s the early adopters, the leaders who both understand and embrace this extraordinary technology, that will put their enterprises at the top of the competitive pack.

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Is Novo Nordisk (NVO) the Best Stock to Buy According to Jim Simons’ Renaissance Technologies?

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Is Novo Nordisk (NVO) the Best Stock to Buy According to Jim Simons’ Renaissance Technologies?

We recently published a list of 15 Best Stocks to Buy According to Jim Simons’ Renaissance Technologies In this article, we are going to take a look at where Novo Nordisk A/S (NYSE:NVO) stands against other best stocks to buy according to Jim Simons’ Renaissance Technologies.

Even after his passing in 2024, billionaire investor and mathematician Jim Simons remains known as the “Quant King” of hedge funds due to the extraordinary success of Renaissance Technologies, his quantitative trading firm based in New York. After years of researching the finance industry, Simons realized the untapped potential of employing quantitative analysis to capitalize on market inefficiencies. This insight led him to develop a data-driven investment strategy of analyzing market behavior solely using statistical and mathematical models. By identifying subtle, non-random patterns in financial data, the quant genius predicted future stock movements and generated impressive returns.

Although it is closed to outside investors, Jim Simons’ secretive Medallion hedge fund, a flagship of Renaissance, has produced ground-breaking results since its inception. The Medallion Fund raked in impressive returns of 56.6% and 74.6% during the early 2000s dot-com crash and the global financial crisis between 2007 and 2011. The fund has maintained a substantial annual return of 31.5% since its first two years of operation. At the time of his death, Simons was worth $31.4 billion, ranking him among the world’s wealthiest individuals, thanks to the strong market performance of the Medallion Fund and Renaissance.

READ ALSO: Billionaire David Einhorn’s 10 Stock Picks with Huge Upside Potential and Billionaire Michael Platt’s 10 Stock Picks with Huge Upside Potential.

Renaissance Technologies’ computer-driven powerhouse came off to a great start after a stellar performance in 2024. The Renaissance Institutional Diversified Alpha Fund has gained 9.05% as of February, continuing to build on its impressive 2024 return of 15.6%, which was its best since its inception in 2021. Meanwhile, the Renaissance Institutional Equities Fund has had its best start in over ten years, rising 11.85% in the first two months of 2025. Both funds are allowed to maintain sizable individual stock positions in addition to using stock index futures and options to help manage risk. However, the firm warns that it may be difficult to quickly unwind these sizable holdings without impacting market prices.

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For this list, we picked stocks from Renaissance Technologies’ 13F portfolio as of the end of the fourth quarter of 2024. These equities are also popular among elite hedge funds.

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Finance expert reveals simple trick to avoid inheritance battles for divorcees who meet new partners later in life

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Finance expert reveals simple trick to avoid inheritance battles for divorcees who meet new partners later in life

Legal and financial experts have revealed how couples who meet and remarry later in life can avoid nasty inheritance battles. 

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Americans 65 and older are increasingly getting remarried following the death of their spouse or a divorce, according to research from the National Center for Family and Marriage Research at Bowling Green State University. 

But those finding love in their golden age may need to work out how they would split their assets – including real estate and retirement accounts.

They may also have disagreements over whose adult children inherits what.

To avoid these issues, Lee Meadowcroft, of Skinner Law in Portland, Oregon, told the New York Times he advises couples to simply keep their bank accounts separate – though he noted that it is difficult to maintain separate accounts.

‘Keeping everything separate seems to work the best, but it’s a rare couple who can actually do that for a long time,’ Meadowcroft admitted.

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‘Although there are ways of protecting finances and keeping things very clear, practically, those things fall apart.’

In those cases, Meadowcroft suggested it may be better for older couples to simply stay together but not remarry.

Lee Meadowcroft, of Skinner Law in Portland, Oregon suggested older couples keep their assets separate

Americans 65 and older are increasingly getting remarried following the death of their spouse or a divorce

Americans 65 and older are increasingly getting remarried following the death of their spouse or a divorce

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‘It can get so messy and it can cause so many problems,’ he said.

Michael Fiffik, a managing partner at Fiffik Law Group in Pittsburgh, Pennsylvania agreed – noting that marriage triggers inheritance rules for certain retirement assets.

If one spouse has a retirement account, for example, they may be required to name the other as a beneficiary.

But if the spouse with the account wanted to bequeath the asset to someone else – say a child – he or she would have to get their new spouse to legally cede their right to it.

For some widows and widowers, remarriage may also mean forfeiting pension or Social Security benefits.

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To avoid these issues, Meadowcroft recommended what one of his client couples, who were both in their 80s did and have a ceremonial marriage – but never actually obtain a marriage license.

‘They said, in the eyes of God, they’re married,’ Meadowcroft recounted. 

‘The state’s purpose for marriage doesn’t have anything to do with that. It’s simply who gets your stuff when you die.’ 

Sometimes it may make more sense for an older couple to not remarry

Sometimes it may make more sense for an older couple to not remarry

But for those who do decide to remarry, experts recommend taking a number of precautions – including getting a prenuptial agreement, life insurance and putting assets in a trust.

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‘Having a prenup is important because it forces a conversation of what happens if this marriage ends because of death,’ Ginger Skinner, a colleague of Meadowcroft’s who works as a founder of an estate law practice in Portland, explained.

She noted that the discussion in itself can bring to light assumptions or differences between spouses, even if it is uncomfortable.

Life insurance, meanwhile, allows people to allocate assets intended to be inherited by spouses or children from previous relationships.

And for those who have significant assets, trusts can protect their financial legacy. 

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Is your partner ambitious? 3 financial red flags in a relationship

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Is your partner ambitious? 3 financial red flags in a relationship

00:00 Speaker A

Picking a partner is one of the most consequential decisions you can make in your financial future. But nearly a third of Americans are uncomfortable discussing money in their relationship, according to a recent survey from Talker Research. Joining me now to talk all things finances and relationships, we’ve got Patty Assay, a finance expert with more than 1 million followers on TikTok. She’s also the author of a new book, “Never Date a Broke Dude: The Financial Freedom Playbook.” Patty, great to have you here in studio.

00:28 Patty Assay

Thank you for having me.

00:30 Speaker A

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Okay. So, as we think about this, I got to ask you, how do you define a broke dude? We should just get that out of the way.

00:36 Patty Assay

Yeah. I’m so glad you asked that, because being a broke dude has very little to do with your bank account. It’s someone who regardless of gender can’t match your ambition, drive, commitment, or work ethic, right? You want someone that matches your energy. You can’t be hustling, and the person sitting on the sofa, eating Cheetos. And I always say you don’t have to match me dollar for dollar, but you do have to match me hustle for hustle. So, that’s what’s important.

01:01 Speaker A

And so when it comes to relationship red flags, what should people be on the lookout for?

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01:06 Patty Assay

All right. I’m going to give you three. The first one is if they ask to borrow money. That tells you that they’re not good with money because they’re asking to borrow money, and that they’ve run through all their friends, all their families, and haven’t paid them back, and now that they’re asking you to borrow money. That’s a huge red flag. The next one is the person that’s always in between jobs, can’t get a job, can’t find a job, don’t have a job. They don’t want a job, all right? And that person is not going to change. And lastly, if a person doesn’t want you to earn your own income, or insists on merging accounts, that means that they’re trying to control you with your finances, and that’s a huge red flag.

02:00 Speaker A

There are plenty of, of stereotypes and expectations around dating, namely that a man should pay for everything. That’s one of the most popular. You say that that’s outdated. Explain more on that.

02:16 Patty Assay

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That is so outdated, because what women don’t understand is that notion came from the patriarchy. The patriarchy created that, because women couldn’t work. We couldn’t have their own bank accounts. So we were dependent on men for our finances, and that was a means of control. So today, if a woman expects a man to pay for everything, she has to understand that in exchange for that money, she’s giving up her power and control over her own life. So each people, they should be financially independent, and they should contribute to the finances of the relationship.

02:51 Speaker A

And so as you’re starting that contribution together, what are some of the early steps for the conversations about merging finances, about making sure that for all the goals that you’ve collectively set together that you’re hitting those in stride?

03:04 Patty Assay

Sure. There’s I, I put seven in the book, but I’ll just give you a few. So the first one is, you want to make sure that your financial goals align. Maybe you want to buy a house and build investments, and the other person wants to live in an apartment, and they’re happy that way. Your financial goals have to align. You have to know, are you a saver? Are you a spender? What are your money habits like? You also have to know what their credit score is, because you can’t even rent an apartment without a good credit score, right? I mean, it’s crazy. What their debt to income ratio is, how much money they make, whether you have to support other people later on in life, like maybe you want to support your parents, and the other person’s like, “No. Why? I don’t want that.” So those are all the conversations that you need to have before you say, “I do,” because by that time, it’s too late.

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04:04 Speaker A

And so as you’re thinking about people who’ve successfully picked right partnerships, and, and had those conversations, and made sure that they are charting that path forward together, where have you seen them continuously have check-ins over time as well, and how important are those check-ins?

04:22 Patty Assay

Those check-ins are huge. And you really need to have a check-in every six months. You need to sit down, put it on the calendar, because if you don’t, you’re not going to remember. Every six months, you’re going to sit down and you’re talk- going to talk about your financial goals. “Are we there yet? What can we do to get there? Are you frustrated about something? Am I frustrated about something?” Get those out on the table, because that’s going to help you in the long run.

04:52 Speaker A

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Just lastly, while we have you here, how do you understand perhaps the changes that need to be made when your financial priorities change as well over time? Say, you’re starting a family. Or say you’re looking to own a home in the future.

05:05 Patty Assay

Right. So you need to sit down and figure out how much money you need in the future, and what budgeting you need to do now, because if you just have a child, it’s so expensive, and if you’re not ready for it financially, it’s a huge strain on the relationship. So anytime there’s things that are upcoming, sit down, talk about it, and make sure that you’re on the same page.

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