Artificial Intelligence (AI) is rapidly transforming many facets of our life. The finance and accounting ecosystem is not an exception. In fact the need for speed and efficiency coupled with the transactional nature of many of the tasks in this sector makes it ripe for the AI wave. This in turn drives unprecedented efficiency, accuracy and strategic value in this sector. Below are the top ten ways AI is boosting accounting and finance efficiency.
- Automating the hamster wheel of routine tasks
- AI as the fraud detection and risk management squad
- Reading financial ‘tea leaves’ through predictive analytics
- The elegant road to Financial Reporting
- Optimising Tax Compliance and Planning
- Enhancing Audit Automation
- Elevating the role of finance professionals
- Harvest Real-Time Financial Insights
- Cost Reduction and Scalability
- Improving Customer Service and Support
AI excels at automating mundane, repetitive tasks that can put the average human brain to sleep. Data entry, invoice processing, bank reconciliations and transaction categorisation, are all being automated and enhanced with Robotic Process Automation (RPA) combined with AI. Executing rule-based tasks swiftly and accurately frees the human mind from the shackles of mundane paperwork.
AI-powered systems analyse vast amounts of transaction data in real-time to detect anomalies and patterns indicative of fraudulent activities. Machine learning algorithms continuously learn from new data, improving their ability to flag suspicious transactions early, thereby preventing significant financial losses. A classical example for this is how HSBC transformed its compliance and fraud detection by integrating AI-driven transaction monitoring. This shift from manual, rule-based systems to AI solutions reduced false positives, improved fraud prevention, and lowered operational costs.
Predictive analytics begins with scouring through colossal information repositories to distill relevant data points. AI is built for this behemoth task. It can go through historical financial data and external factors to generate highly accurate forecasts for revenue, expenditures and cash flow. Take the Commonwealth Bank of Australia for example. They adopted AI-powered document analysis tools to automate the analysis of billions of transactions with machine learning and NLP. This accelerated the bank’s data-driven decision-making and improved accuracy.
Remember those hours slogging over a keyboard to present your quarterly reports? Well, AI could be the answer to all those prayers. AI automates data extraction, aggregation and analysis for financial reporting. Advanced algorithms can identify exceptions and anomalies, generate comprehensive reports quickly and improve the accuracy of financial statements. This reduces the time spent on report preparation and enhances decision-making.
AI helps organisations architect tax frameworks that bend but don’t break. This is by helping organisations stay on top of the constantly evolving tax regulations by automating tax filing processes, analysing financial records for tax-saving opportunities and ensuring adherence to local and international laws.
AI streamlines auditing by automating data sampling, risk assessment, anomaly detection and transactional validation. Expert systems and AI tools assist auditors in planning, evidence gathering and risk evaluation, improving audit quality and reducing time and costs associated with manual audit processes.
AI helps you offload all routine tasks and allows finance and accounting teams to transition from transactional roles to strategic business roles. AI-generated insights empower these professionals to contribute to business growth, risk management and profitability enhancement.
AI enables continuous analysis of financial data, providing organisations with real-time insights into cash flow, expenses and profitability. This immediacy supports faster decision-making and agile financial management.
AI adoption leads to significant cost savings by reducing manual labour, minimising errors and optimising resource allocation. Just incorporating accounting AI into e-invoicing is estimated to save up to $28 billion in the next decade.
AI-powered chatbots and virtual assistants enhance customer interactions by handling routine enquiries and providing instant responses. This in turn improves customer satisfaction and reduces operational costs.
The integration of AI in accounting and finance is already a fact. It is sweeping across the industry and empowering organisations with enhanced efficiency and better regulatory compliance. AI is not just relegated to automate routine tasks, it’s not just a soft machine. It is here to enhance fraud detection, compliance, forecasting, and strategic decision-making. It is here to empower finance teams to deliver greater value with speed and accuracy. While the finance and accounting sector is by nature a cautious one, the last to embrace change, this revolution is being embraced fast.
How can Infosys BPM help?
Infosys BPM’s Finance and Accounting Services include solutions for enterprises seeking to transform and thrive in a rapidly changing ecosystem. We assist businesses in creating breakthrough digital solutions that enable strategic insights, business excellence, and enhanced customer experiences.
