With the emergence of AI and progressive technology in today’s world, many industries have employed and embedded AI into their systems of operations and it’s of no difference when it comes to Finance, Accounting, and Business as Chief Financial Officers have seen the immense potential that generative AI will bring to business in the end game. The following are ways in which AI has so far been embedded in Finance and Accounting:
1. Making human workers more efficient and productive
In the wake of this new age of technology, according to Mark Maurer companies are hoping generative AI will transform their accounting and finance departments areas with repetitive tasks and ripe for using technologies that can make human workers more efficient and productive.
2. Addressing the shortage of accountants
CFOs, generally are known to be risk-averse, have concerns about data security and technology reliability, particularly in a sensitive area like finance. They are also curious about the efficiencies they could reap at a time when many companies hunt for cost-cutting opportunities, as well as the prospect of helping address the drastic shortage of accountants.
3. Streamlining their finance operations
CFOs have begun experimenting with using generative AI in finance in recent years, businesses have increasingly relied on Robotic Process Automation to streamline their finance and operations coupled with efficiency. Businesses have also included machine learning to predict various financial scenarios. Generative AI promises to be the latest tool to help companies improve their ability to forecast their performances. As Kelly Steckelberg said “It’s always easier to react to a document than to draft it”.
4. Attracting more people into the accounting profession
In the wake of AI, finance and accounting professionals will have more bonus skills than experienced professionals today and will look more like data scientists and software engineers. This will give them more responsibility and decision-making authority than in the past and hence more college graduates will be attracted to the profession.
5. Integrating AI into ERPs
Many companies expect generative AI capabilities will be embedded into their ERP systems and CFOs see the potential. As technology evolves, CFOs have a rough idea for generative AI. According to CFO Amita Ahuja, she claims that AI could provide support by creating the first drafts of journal entries detailing the company’s business transactions, financial reports, and statements that employees can later revise and improve. Churpy Reconciliation
6. Security of data and information integrity
Many CFOs are wary of the risks related to data security and accuracy in relying more on AI to handle critical tasks. Companies AI poses data, bias, and other risks that auditors need to consider in their assessments. Integrity in information will also be vital to accountants as this will be a crucial part of AI’s integration into finance and accounting.
CFOs are hoping that the integration of AI into finance will come also with more efficient outputs in the business, accounting, and finance spheres for future performances.