From revenue and production data to performance and risks, accountants arguably have access to their company's most valuable information. Yet, when it comes to using artificial intelligence and other advanced technologies to transform that data into timely insights, finance and accounting tend to lag behind.
This makes sense in the high-risk, high-profile field of finance, where technology moves faster than regulation. However, there is no more room for doubt that the future of finance is autonomous. The benefits of AI are undeniable, from more accurate transactions and faster processing times to smarter data insights. And generative AI, the technology behind tools like ChatGPT, has likely accelerated the timeline of what's possible from around 10 years, down to two or three.
Waiting for things to happen isn't an option. Accountants must understand and embrace these technologies or else risk falling behind. So, how can accountants and finance leaders develop an AI strategy to create an autonomous finance organization? In this new AI world, here are the steps you can take to set up your firm for success:
Learn about what AI can do
To harness the power of AI, finance leaders first need to understand what it can do for them. From chatbots and word processing to fraud detection and predictive analytics, AI has the power to automate any number of tasks. It is important to have a baseline understanding of how the technology works, as well as where and how it can be applied for the greatest benefit. Leaders can start by consulting research developed by Gartner and other analyst firms.
Identify potential areas for AI implementation
The next step is to identify current processes that are ripe for improvement through AI. And there are plenty. In financial planning and analysis, AI can enhance budgeting, predictive analysis and forecasting, as well as inform data-driven investment decisions. In accounts payable, AI can perform invoice processing and payments autonomously with fewer errors and less processing time than humans. AI can handle fraud detection, assist in compliance with ever-changing laws and regulations, automate tax calculations, optimize financial reporting, and even choose and communicate with vendors.
Evaluate processes and team capabilities
While AI technology hasn't yet matured in all those areas, accountants should nonetheless be prepared. As you begin to create a strategy, explore which processes are the most resource-constrained, inefficient or strategically important, which will inform where AI can have the greatest initial impact.
Here are some questions to ask:
- What manual, repetitive tasks do we perform?
- What decision-making processes rely heavily on human analysis of data?
- How much time does the team spend on data entry or gathering?
- Are there areas where mistakes often occur, or that often require rework?
- Are there areas where faster, more accurate decision-making could improve performance?
- Does the team possess the required skills to work alongside AI in this area? If not, what level of training would be necessary?
Picture the pyramid of value in the finance organization. AI should first replace tasks at the lower level so the firm will be elevated to higher-value work.
Consider the tradeoffs
While AI poses tremendous long-term competitive advantages and organizational benefits, any disruptive technology will require adjustment. Costs should be weighed against long-term benefits and ROI. Implementing new tech may disrupt current operations, so strategies should include timing and how to minimize disruption. Cybersecurity must also be considered, as AI processes large amounts of data, which must be handled securely.
And, of course, automation will have an impact on job roles. While AI will make some jobs obsolete, it will also create new jobs — many of which we haven't even imagined yet. Managing this transition and retraining employees so they are ready to seize the opportunity of AI is paramount.
Develop and launch an AI strategy
Now you're ready to develop an implementation roadmap — a step-by-step plan for how to go from your team's current state to the desired future state, including timelines and resources required. Once the strategy is launched, change management — including clear communication and continued training — will be critical throughout. Continuous monitoring and adjustment of the strategy is also important to ensure the organization's desired results.
The time is now
Now that accounting leaders understand the steps for creating an AI strategy, it's time to take them — starting now. Not only will preparing for this AI future set up your firm for success, but it will also give you a head start on training the AI you end up adopting. Just like humans, AI needs time to learn — and the sooner it is implemented, the more time it will have to become faster and more accurate.
Finance tends to be cautious and slower to change — and that's not a bad thing, in a risky world. But when it comes to AI, businesses can't risk falling behind. The earlier accounting teams begin their AI journey, the more powerful and impactful that AI will be — giving their businesses an edge over the competition.
