50 ways to use Google Bard AI Useful in Finance — Part 1
As a finance and investing professional, you know that time is money. That’s why Google Bard is a game-changer for finance and financial analysis in general.
I have explored Chat GPT and other AI tools as well but Google Bard really surprised me.
I have also wrote guides on the differences between both tools.
In terms of Google Bard, this large language model is packed with financial knowledge and can be used to automate a wide range of tasks, from generating financial reports to forecasting future performance.
But that’s not all — Google Bard can also help you identify potential risks and opportunities, and make recommendations to improve your company’s financial performance. Imagine being able to ask Bard a complex question like “What are the risks to our company’s financial performance?” and getting a comprehensive answer in seconds!
So let’s start with the guide:
1. Generating financial reports
Google Bard can generate financial reports, such as income statements, balance sheets, and cash flow statements for public companies. It can access the internet so its training data does not finish in 2021 (sorry ChatGPT).
Prompt: generate a financial report from apple
2–4. Do Sensitivity Analysis of Financial Statements
By harnessing the power of artificial intelligence, this remarkable tool enables finance professionals to assess the impact of various scenarios on financial statements, providing a comprehensive understanding of how changes in key variables can affect profitability, liquidity, and overall performance.
Prompt(s):
2) First I asked: Can you analyse Tesla balance sheet for 2022
3) Then: Can you give me the output of this analysis in Google Sheets or in a Table format
4) And finally: Now give me the prediction of 2023 with a sensitivity analysis of growth of 2%, 5% and decline of 10%
With Google Bard, you can explore countless what-if scenarios, effortlessly analyze complex data sets, and make informed decisions that propel your organization towards success.
5. Analyzing any financial data that you input
Google Bard can analyze financial data to identify trends, patterns, and outliers. It can also help you to forecast future financial performance.
For example, imagine that you have some data that you want AI to help you to analyse. You simply need to ask and Google Bard will identify what is the data that you are giving, what items are increasing, decreasing and any other trends.
Prompt: Analyse this data
6. Explain to you financial terms like “3 way model”
This was Google Bard’s full explanation for example:
“A 3-way model in FP&A is a financial model that forecasts a company’s income statement, balance sheet, and cash flow statement. The model is called a “3-way” model because it forecasts all three financial statements. The model is typically used by financial analysts and other professionals to help them make informed decisions about a company’s financial health.
The 3-way model is built on a foundation of historical financial data. The analyst will start by gathering historical data for the company’s income statement, balance sheet, and cash flow statement. The analyst will then use this data to create a forecast for the company’s financial performance in the future.
The analyst will use a variety of factors to create the forecast, including the company’s historical financial performance, the current economic environment, and the company’s future plans. The analyst will then use the forecast to create a 3-way model.
The 3-way model is a powerful tool that can be used to help analysts make informed decisions about a company’s financial health. The model can be used to assess the company’s financial performance, identify potential risks, and make recommendations for improvement.
Here are the steps involved in creating a 3-way model:
- Gather historical financial data.
- Create a forecast for the company’s financial performance in the future.
- Use the forecast to create a 3-way model.
- Analyze the model to identify potential risks and make recommendations for improvement.
Here are some of the benefits of using a 3-way model:
- It can help analysts make informed decisions about a company’s financial health.
- It can help analysts identify potential risks.
- It can help analysts make recommendations for improvement.
Here are some of the limitations of using a 3-way model:
- The model is only as good as the data that is used to create it.
- The model is based on historical data, so it may not be accurate for the future.
- The model is only a tool, and it should not be used as the sole basis for making decisions.”
7. Explain finance terms for non-finance people
Explain differences between CAPEX and OPEX in very simple terms for non finance audience
8. Generating Python Code to create a 3 way model with your data
Now that you know what is a 3 way model, maybe you want to try it with the data of your company or another public company.
You can ask Google Bard for code to do this:
This is the full code in case you want to try:
import numpy as np
import pandas as pd
# Load the data
income_statement_data = pd.read_csv('income_statement.csv')
balance_sheet_data = pd.read_csv('balance_sheet.csv')
cash_flow_statement_data = pd.read_csv('cash_flow_statement.csv')
# Create the features
income_statement_features = income_statement_data[['feature1', 'feature2']]
balance_sheet_features = balance_sheet_data[['feature1', 'feature2']]
cash_flow_statement_features = cash_flow_statement_data[['feature1', 'feature2']]
# Create the targets
income_statement_target = income_statement_data['target']
balance_sheet_target = balance_sheet_data['target']
cash_flow_statement_target = cash_flow_statement_data['target']
# Split the data into training and test sets
income_statement_X_train, income_statement_X_test, income_statement_y_train, income_statement_y_test = train_test_split(income_statement_features, income_statement_target, test_size=0.25)
balance_sheet_X_train, balance_sheet_X_test, balance_sheet_y_train, balance_sheet_y_test = train_test_split(balance_sheet_features, balance_sheet_target, test_size=0.25)
cash_flow_statement_X_train, cash_flow_statement_X_test, cash_flow_statement_y_train, cash_flow_statement_y_test = train_test_split(cash_flow_statement_features, cash_flow_statement_target, test_size=0.25)
# Create the models
income_statement_model = LogisticRegression()
balance_sheet_model = LogisticRegression()
cash_flow_statement_model = LogisticRegression()
# Fit the models
income_statement_model.fit(income_statement_X_train, income_statement_y_train)
balance_sheet_model.fit(balance_sheet_X_train, balance_sheet_y_train)
cash_flow_statement_model.fit(cash_flow_statement_X_train, cash_flow_statement_y_train)
# Predict the test sets
income_statement_y_pred = income_statement_model.predict(income_statement_X_test)
balance_sheet_y_pred = balance_sheet_model.predict(balance_sheet_X_test)
cash_flow_statement_y_pred = cash_flow_statement_model.predict(cash_flow_statement_X_test)
# Evaluate the models
income_statement_accuracy = accuracy_score(income_statement_y_test, income_statement_y_pred)
balance_sheet_accuracy = accuracy_score(balance_sheet_y_test, balance_sheet_y_pred)
cash_flow_statement_accuracy = accuracy_score(cash_flow_statement_y_test, cash_flow_statement_y_pred)
print('Income Statement Accuracy:', income_statement_accuracy)
print('Balance Sheet Accuracy:', balance_sheet_accuracy)
print('Cash Flow Statement Accuracy:', cash_flow_statement_accuracy)This code will create a 3-way model using the LogisticRegression class from the Scikit-Learn library. The model will be trained on the training set and then evaluated on the test set. The accuracy of the model will be printed to the console.
The user can then use the model to forecast the company’s financial performance in the future. The user can use the forecast to make informed decisions about the company’s financial health.
9. Generate the explanation of a Financial Report or even a 3 way model of a publicly traded company.
Google Bard can write financial reports that are clear, concise, and easy to understand.
Prompt: Generate a 3 way model that analyses Teslas balance sheet, cash flow and income statement
Remember that by using Google Bard for finance, you can save time and streamline your processes, leaving you more room to focus on high-level strategic activities.
Plus, with Bard’s accuracy and efficiency, you can be sure that your financial analysis is top-notch.
This is the end of part 1.
If you want to read part two and continue to learn how to leverage Google Bard and AI, come back tomorrow at this time and part 2 of the article will be published in my profile.
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