Artificial Intelligence in Finance and Accounting

Artificial Intelligence in Finance and Accounting

Artificial Intelligence is making a significant impact in the world of finance and accounting. AI systems output can be more accurate and in some cases they supersede human efforts, but they do not replicate human brains. We need to recognize the limits and strengths of AI & also need to figure out the best ways for computers and humans to work together.  

Benefits of Artificial Intelligence for Finance Professionals and Accountants:

Artificial Intelligence (AI) has the potential to transform accounting and finance industries with advancements of eliminating the tedious tasks and making free human finance professionals do more lucrative analysis. Yet, many companies hesitate to employ Artificial Intelligence in their work. It is because of the uncertainties around the business. AI has been implemented in many industries, including stock markets, shopping malls, educational institutes and so on.

One of the biggest challenges for accountants is the vast amount of transactions to deal with, especially in the Business to Business (B2B) space where you have thousands of customers. So, it’s said that a lot of time is being spent handling massive transactions. While you are dealing with many transactions, always keep a record of each & every transaction, hence comes the role of Artificial Intelligence into the picture. Artificial Intelligence promises to boost the quality of outputs and productivity while permitting auditability and transparency. Apart from providing a broad range of possibilities, AI minimizes the responsibilities of the finance team which will help save time. Besides, it will easily forecast financial statements. AI with Machine Learning will predict future data based on past records.

Machines Imitate Human Intelligence:

Artificial intelligence chatbots, Automation, ML-tools, and other AI technologies play a vital role in the finance sector. Finance and Accounting companies make AI & ML as a part of their business by investing heavily on these technologies. The applications of Artificial Intelligence and Machine Learning are impacting finance and accounting professionals. Using these technologies, finance experts can raise their productivity with new clients. Also, AI technology can replace humans from repetitive tasks of organizing, extracting, and structuring the data. But, there are some auditors and accountants working with Artificial Intelligence who can perform various tasks as well.

Fighting Misrepresentation:

Using Machine Learning algorithms, companies can analyze the payments in new innovative ways. Every transaction includes identifiable information. With AI & ML, the companies can search for payments rapidly and efficiently through the standard set of factors like velocity, time, and amount. Artificial Intelligence helps in processing huge data from different sources, relationships, and problematic transactions in a visual tool.

AI makes accounting tasks easier:

AI machines automate the procedures of accounting. Companies adopt digital transformation as automation is accessing all over the company. The finance and accounting leaders who deployed Artificial Intelligence will be ranked in the digital transformations.

Pay/Receive Processing:

As we know, invoice processing has been one of the costly and time-consuming jobs in any firm. One needs to go through all the emails, extract the data manually, download invoices, and process the payments. In this globalized era, the need to invoice automation has become vital to increase the volume, improve accounting, maintain vendor relationships, and get zero-error processing. Digital transformation in finance and accounting has gone to the next level.

Supplier Onboarding:

Artificial Intelligence in the onboarding process helps you to reach new customers while differentiating your company from the competition and increasing revenue. AI-powered systems can assess the suppliers with credit scores or by scrutinizing their tax details. Without human involvement, Artificial Intelligence can set all suppliers in the systems.

Audits:

For Auditors, data analytics are very crucial. It helps improve the audit scope. Robotic Process Automation (RPA) and data analytics always facilitate audit transactions and tracking records. Predictive analysis, Cognitive computing, and AI help with non-routine transactions that require judgments. AI automates many of the manual tasks like data integration. It analyzes the complete dataset without the requirement of human Intelligence. The important factor of the audit is that Artificial Intelligence is changing the reasonable assurance and identifying the anomalies.

AI Chatbots:

AI chatbots help solve many of the users’ queries efficiently. These may include latest bank account details, credit bills, bank statements, account status and so on. By using AI-chatbots, the finance team can automate the follow-up process and track outstanding invoices. These chatbots allow employees in some other departments like marketing or sales, track business expenses, and to report more effectively.

Artificial Intelligence automates many aspects of business. There is a good opportunity for both finance and accounting professionals to upskill their career. The CMA (Certified Management Accountant) certification prepares you to equip the skills and attain success in the accounting profession.

Conclusion:

The article shows how the accounting and finance industries are rapidly changing with AI technology. With machines taking care of the monotonous tasks, the finance and accounting professionals will take on the tasks better suited for them. I hope this article helps you.

Author Bio:

Anji Velagana is the Content Strategist at Simandhar Education. He has 2 years of experience in content writing and blogging. He loves pursuing excellence through writing and has a passion for technology & educational content.

Last updated:8/11/2020 1:13:33 AM
Anji Velagana

Anji Velagana

Anji Velagana is the Content Strategist at Simandhar Education. He has 2 years of experience in content writing and blogging. He loves pursuing excellence through writing and has a passion for technology & educational content.

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