Conscious CFOs are asking how artificial intelligence (AI) can be integrated into the finance function, what benefits it can bring, and where to start. The transition from experimental to operational use of AI is happening quickly.
AI is already being deeply integrated into companies' core business in various ways, such as predicting competitors' reactions, identifying machinery needing repairs, and even predicting who the company's best customers will be in five years.
The CFO holds a unique position when it comes to introducing AI into the company. As the person responsible for the finance function, the CFO has access to a wealth of vital data that forms the basis for AI. This includes data on production operating costs, outstanding customer receivables, and financial results from business units.
The finance function consists of numerous repetitive and routine tasks that are highly suitable for automation with AI.
Here are some examples of applications we see making early inroads in finance and related functions. These applications fall within the CFO's purview and use data typically under the CFO's control.
- Reduced manual labor and errors:
AI can automate many repetitive and manual tasks in the accounting department, like invoice processing, bookkeeping, and reconciliation. This lessens the need for manual effort and minimizes the risk of human errors, which can be expensive to correct. - Automated invoice flow:
AI can read, interpret, and categorize invoices without you handling them. This saves time and resources that would otherwise be spent on manual processing and verification of invoices. Additionally, it reduces the risk of human misinterpretations and mistypings in the process. - Better cost control:
AI can analyse and monitor financial data more detailedly and swiftly than humans. By identifying unusual cost patterns or deviations, AI can aid in better cost control and help identify areas where savings can be made. -
Optimized creditor management:
AI can analyze payment history and creditor information to identify patterns and forecasts for future payments. This can assist the accounting department in optimizing creditor management, for instance, by spotting opportunities for early payments to take advantage of discounts or avoid late fees.
- Improved financial forecasting:
AI can analyze historical financial data and external factors to produce more accurate financial forecasts. This assists the accounting department in making better decisions about budgeting, investments, and financial planning. More precise forecasts can help minimize financial risks and optimize resource allocation.
By implementing AI in the accounting department, businesses can achieve significant cost savings while enhancing the efficiency and accuracy of the accounting process.
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