Use Case | Application of the Generative Model for Use Cases in the Financial Area

Application of the Generative Model for Use Cases in the Financial Area

The generative model, designed to analyze PDF documents, can automate key processes in financial management. Below are specific use cases:

1. Invoice and Expense Auditing

Overview:
Automatically validate that invoices and expense receipts comply with the terms set out in contracts and purchase orders.

How It Works:

1. Document Upload:
   • Users upload invoices and expense receipts in PDF format to the system.
2. Model Analysis:
   • Verifies:
     • The amounts match the terms of the contract or purchase order.
     • Taxes and discounts are applied correctly.
     • Invoices are not duplicated or inconsistent.
3. Report Generation:
   • Correct invoices ready for processing.
   • Invoices with discrepancies highlighted, along with recommendations for correction.

Example Generated Report:

• Invoices Analyzed: 20
• Compliant: 17
• With Discrepancies: 3 (e.g., Invoice 5 exceeds the agreed amount by $500).

Benefits:

• Identifies errors before processing payments.
• Improves financial transparency.

1. Compliance with Reporting Standards

Overview:
Ensure that financial reports comply with regulations such as IFRS, GAAP, or local standards.

How It Works:

1. Document Upload:
   • Users upload financial reports (e.g., income statements, balance sheets).
2. Model Analysis:
   • Verifies:
     • All mandatory elements are present.
     • Calculations and reconciliations are consistent.
     • The report complies with accounting standards.
3. Report Generation:
   • Highlights areas of compliance and critical omissions.

Example Generated Report:

• Reports Analyzed: 3
• Fully Compliant: 2
• Errors Detected: 1 (Missing breakdown of provisions in the balance sheet).

Benefits:

• Minimizes regulatory risks.
• Facilitates external audits.

1. Investment Proposal Evaluation

Overview:
Analyze investment proposals in PDF format to identify the option with the best return and lowest risk.

How It Works:

1. Proposal Upload:
   • Users upload investment proposals to the system.
2. Model Analysis:
   • Compares:
     • Financial projections.
     • Internal rates of return (IRR).
     • Associated risks.
3. Report Generation:
   • Classifies proposals based on profitability and risk.

Example Generated Report:

• Proposals Analyzed: 5
• Best Proposal: Proposal B (Projected profitability: 12%, Moderate risk).
• Worst Proposal: Proposal D (Projected profitability: 4%, High operational risk).

Benefits:

• Speeds up strategic decision-making.
• Ensures the selection of investments aligned with goals.

1. Credit and Loan Analysis

Overview:
Evaluate credit or loan applications to determine their financial viability.

How It Works:

1. Application Upload:
   • Users upload credit or loan applications in PDF format containing the applicant’s financial information.
2. Model Analysis:
   • Evaluates:
     • Debt ratios and repayment capacity.
     • Financial history.
     • Consistency between income and obligations.
3. Report Generation:
   • Approves or rejects applications based on predefined criteria.

Example Generated Report:

• Applications Analyzed: 10
• Approved: 7
• Rejected: 3 (e.g., Application 6: Excessive debt, debt/income ratio: 70%).

Benefits:

• Reduces the risk of defaults.
• Improves credit allocation.

1. Financial Contract Review

Overview:
Automate the review of financial contracts related to financing, mergers, or acquisitions.

How It Works:

1. Contract Upload:
   • Users upload financial contracts in PDF format.
2. Model Analysis:
   • Verifies:
     • Clauses are clear and complete.
     • Payment terms, interest, and penalties are defined.
     • Compliance guarantees are included.
3. Report Generation:
   • Identifies critical areas and problematic clauses.

Example Generated Report:

• Contracts Analyzed: 8
• Compliant: 6
• With Issues: 2 (Contract 5: Ambiguous penalty clauses for non-compliance).

Benefits:

• Minimizes legal and financial risks.
• Ensures contractual transparency.

1. Accounts Receivable and Payable Auditing

Overview:
Review accounts receivable and payable to identify discrepancies and prioritize necessary actions.

How It Works:

1. Document Upload:
   • Users upload account statements and related invoices.
2. Model Analysis:
   • Verifies:
     • Balances match the invoices and payments made.
     • Overdue accounts are identified.
     • No duplicates exist.
3. Report Generation:
   • Classifies accounts by priority and highlights inconsistencies.

Example Generated Report:

• Accounts Analyzed: 50
• Compliant: 45
• With Issues: 5 (Account 12: Duplicate invoice, amount: $1,200).

Benefits:

• Improves cash flow management.
• Reduces errors in accounting.

General Benefits of the Model in the Financial Area

1. Full Automation:
   • Analyzes large volumes of PDF documents in minutes.
2. Higher Accuracy:
   • Identifies errors, inconsistencies, and omissions with high precision.
3. Guaranteed Compliance:
   • Ensures documents comply with local and international regulations.
4. Operational Efficiency:
   • Reduces the time needed for audits and manual reviews.
5. Data-Driven Decision-Making:
   • Provides clear and actionable recommendations for each use case.

Conclusion

The generative model optimizes key processes in the financial area, from invoice and account auditing to investment proposal evaluation and contract analysis. By processing PDF documents automatically and accurately, it ensures transparency, regulatory compliance, and efficient management of financial resources.