It’s no secret that technology is altering the way we create financial solutions. The introduction of artificial intelligence has opened the door for more efficient management of data and allows for updated organizational tasks. But, AI in the workforce isn’t what sci-fi movies and books portray it to be. In fact, we interact with AI on a daily basis.
For example, we use AI for filtering spam emails, customer support, GPS traffic monitoring, movie and TV show recommendations and so much more. In reality, businesses of all shapes and sizes can benefit from integrating AI tools and solutions.
Benefits of AI in Financial Management
In regards to multi-tenant clouds, AI allows for all customers and users to share computing resources across industries based on their needs. According to Sage Intacct, the benefits of AI financial management include continuous trust, insights and accounting. Machine learning for real-time data and timesheets is extremely useful for financial management systems. This is because it monitors transactions continuously instead of having to do it manually.
According to CIMA, 50% of finance functions focus on transaction processing and only 7% focus on organizational strategy. However, the integration of AI would curtail time spent on transaction processing so that strategic decision support is a priority.
Ethical Considerations
Despite all of the benefits that AI creates in the financial services industry, it is important to address its drawbacks. Ethical considerations about human bias, accountability and security should be examined. In order to prevent problems that arise from these things, AI models need to be trained and tested to ensure company data is protected.
The Future of AI
In addition, a PWC study states that AI will contribute $15.7 trillion to global GDP by 2030. The finance sector will specifically benefit from the implementation of AI because it uses resources to effectively save time and money. Therefore, companies can concentrate on more pressing areas of management.
Moreover, the future of AI in finance will transform day-to-day functions of management services. For example, in the next few years of AI expansion we will see AI continuously monitoring performance, detecting anomalies, using recommendation systems, automating processes and implementing conversational AI.
How to Prepare for AI
In order to prepare your business for AI, the information that is collected should reflect accurate company data as much as possible. This means that AI needs to gather as much data as it can to get a better understanding of the company. Also, it is important for businesses to understand, trust and take advantage of AI solutions that could improve their functionalities.
For more information about how artificial intelligence and cloud computing could be beneficial for your company, feel free to contact InCloud 360.
The information from this blog was retrieved from the Sage Intacct’s webinar “How AI Will Transform Financial Management.”