00:00

Leveraging Generative AI for Improved ROE in Caribbean Strategy

Alarming trends in ROE reduction and volatility in Caribbean firms call for leveraging Generative AI to enhance profitability, stability, and investor confidence. Using AI for pattern recognition, scenario planning, and performance prediction can help recover from losses, identify root causes, optimize capital structure, and inform strategic decisions for sustainable growth.

saraiba
Download Presentation

Leveraging Generative AI for Improved ROE in Caribbean Strategy

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Leveraging Generative AI to Unlock Return on Equity William W. Lawrence caribbean.strategy@gmail.com 1

  2. Alarming Levels of ROE Reduction and Volatility ROE = Profit After Tax ÷ Average Shareholders’ Equity Weak ROE Control 80% 40% % Firms Reporting ROE Reduction 70% 30% % Change in Dividends Paid 60% 20% 50% 10% 40% 0% 30% -10% 20% -20% 10% -30% 0% -40% 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 % JSE Firms That Reported ROE Reduction % Change in Dividends Paid Data Source: JSE Yearbooks 2

  3. Managing ROE Generative AI: Computer systems that uses deep learning to autonomously create new contents such as texts, images, and videos.  Pattern recognition  Scenario planning  Benchmarking  Performance prediction  Resource allocation  Monitoring & Communications  Increased profitability  Stable dividend payout  Low financial risk  High investor confidence 3

  4. Leverage Generative AI to Utilize ROE Dashboards Ask AI: What product mix? Ask AI: What Capital Structure? Ask AI: What business model? 4 Data Source: Jamaica Stock Exchange Yearbooks

  5. Leverage Generative AI to Recover from Losses Leverage Generative AI to Recover from Losses Assess decline Ask AI: What root cause? A Cause: Weak risk control Actions for Turnaround:  Rights issue  Sold non-core asset  Revised product portfolio  New risk control system  Online service portal Boost Financial Health Ask AI: What balance sheet? B Choose Strategy Ask AI: What business model(s)? C Develop Efficiency Ask AI: What talent & systems? D Data Source: Company Annual Reports 5

  6. Leverage Generative AI to Inform Further Actions  Benchmark global best practices to identify ROE gaps  Anticipate impact of business strategies on ROE ratios  Analyse business models for opportunities to increase ROE  Develop staff incentives aligned to ROE ratios Thank you! William Lawrence caribbean.strategy@gmail.com 6

More Related