Would bet my net worth with 100x leverage that front office finance jobs will still use spreadsheets 10 years from now
Can you run an LBO model with python, audit each cell (F2), make micro adjustments to formulas with instant feedback, toggling an assumption back and forth to see how it impacts a sensitivity table that is 1000 calculations later in the chain? And do this with someone who just got out of college a couple months ago?
The act of making the spreadsheet in many cases forces the user to think about assumptions, and reason about the drivers. You may not always have it fully formed in your head in advance as a prompt until you see the data, create an operating build, etc.
If an MD draws on their iPad “make a box here, increase spacing in these three areas, change the calculation for this one year of EBITDA to xyz, and make an italics EBITDAR line underneath, break out product lines in revenue build, shift to monthly, etc” they can give to an analyst and can get back exactly what they want to see in an hour. They don’t need to wait 12 months for a SaaS platform to maybe add the feature. Or prompt an LLM that may asymptote on what you want but isn’t perfect.
There are also so many edge cases for bad data from private companies where you really need to manually look at the data points to understand the gaps. Python doesn’t allow you to do that and prompting doesn’t provide a visual surface.
I’m sure you will be able to prompt a lot of this stuff but for many use cases the form factor will continue to be a spreadsheet - the analyst will be able to make tweaks to the spreadsheet output the LLM makes, check the logic easily, make edits where it’s faster to make it the way you want vs type out prompts, etc
In front office finance jobs (maybe other than VC which is less precise with modeling), one single calculation error can dramatically change the answer and cost you $1 million or $1 billion. 95% right is 0% useful. Python and prompting do not allow for full verification of the calcs and data through to the primary sources.
Tech ppl perennially have a fundamentally flawed mental model of Excel (“why not use Python????”) because they have never had exposure to how it’s used in the real world, and it’s why so many companies with the business model “move your OUTDATED spreadsheets to my MODERN B2B SaaS in your browser!” that for the past decade have spammed PE firm inboxes have crashed and burned
Spreadsheets are a better form factor than python for business users and LLMs won’t kill spreadsheets
I’d like to congratulate @RyderCupEurope on their victory. Your team play the first few days was sensational.
More importantly, I’d like to apologize for the rude and mean-spirited behavior from our American crowd at Bethpage.
As a former player, Captain and as an American, I am ashamed of what happened. #RyderCup
Paraic and I were delighted to represent PwC as sponsors of this great golf event. There was some great golf on display at @StAnnesGCNews and the best to win from Charlie McDonnell from Concra Wood. @PwCIreland
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