Financial modeling in investment banking is being reimagined with the help of Generative AI, moving away from traditional Excel-based models towards intelligent, adaptive systems such as LLMs and platforms like LangChain and LangGraph.
Generative AI is enhancing financial modeling by providing augmentation and aiding human judgment rather than replacing it, with innovations like RAG Pipelines making models more contextually aware.
Key areas where AI is transforming financial modeling include scenario analysis, natural language to code/model transformation, accelerated due diligence, continuous model updating, custom report generation, and enhanced decision-making.
While generative AI brings significant benefits to financial workflows, collaboration with human experts remains crucial, requiring a blend of innovation, transparency, governance, and ethical oversight to harness its full potential in investment banking.