Opportunities and Challenges of Generative-AI in Finance

Machine Learning and data mining have created widespread impact across various domains. However, these techniques are limited in their ability to reason, understand and generalize w.r.t language specific tasks. The aforementioned challenges were overcome, with the advancement of LLMs/Gen-AI. Gen-AI techniques are able to improve understanding of context and nuances in language modeling, translation between languages, handle large volumes of data, provide fast, low-latency responses and can be fine-tuned for various tasks and domains. In this manuscript, we present a comprehensive overview of the applications of Gen-AI techniques in the finance domain. In particular, we present the opportunities and challenges associated with the usage of Gen-AI techniques in finance. We also illustrate the various methodologies which can be used to train Gen-AI and present the various application areas of Gen-AI techniques in the finance ecosystem. To the best of our knowledge, this work represents the most comprehensive summarization of Gen-AI techniques within the financial domain. The analysis is designed for a deep overview of areas marked for substantial advancement while simultaneously pin-point those warranting future prioritization. We also hope that this work would serve as a conduit between finance and other domains, thus fostering the cross-pollination of innovative concepts and practices.