Thanks to ongoing technological advancements, artificial intelligence has become a reality today. Since AI is no longer a piece of science fiction, industries all around the world are adopting AI solutions. From stock trading to healthcare, Artificial Intelligence (AI) has been implemented in multiple industries to streamline operations.
AI systems are designed to augment human activities to achieve greater speed, accuracy, and volume capability of computers. AI eliminates time-consuming, manual jobs, and allows workers to focus on higher-value skills, such as finding operational efficiencies and building relationships with current or potential customers. This technology is already embraced by many industries and now AI is poised to transform the finance and accounting industry also.
Artificial Intelligence in Finance and Accounting
The finance and accounting professionals have to deal with mass amounts of numbers and data. Manual data handling can be a complex, time-consuming, and frustrating process. This is where AI can eliminate tedious tasks and free up time for financial staff to prioritize higher impact responsibilities. The cloud-based AI applications that employ machine learning can perform the hard work of data query and analysis. AI can process data at lightning speed and can also draw complex conclusions from that data. This helps in eliminating errors that their human counterparts may commit otherwise. To understand this better, let’s take a look at how is the accountancy and finance world using artificial intelligence.
- Streamline Data Entry and Analysis
This technology enables accountants and bookkeepers to eliminate repetitive, manual tasks of accountancy. With the help of AI, accountants and financial managers can extracts data from receipt images, automatically classify it based on the spend category, and populate reports for analysis. AI helps in eliminating the task of extracting financial data from multiple documents, PDFs, and spreadsheets. Accounting apps powered by machine learning can automatically extract data from receipts and spreadsheets to populate dynamic custom reports. These apps also allow accountants to receive automated insights and manage transactions by having conversations with chatbots. By automating tasks of Bookkeeping and Sales Tax administration, AI-enabled apps provide businesses with smart insights to improve financial planning.
- Minimize Chances of Fraud
As businesses become more decentralized, it becomes difficult for accounting professionals to eliminate the risks of fraud and meet regulatory compliance targets. When employees spend money across multiple spending categories, the financial data gets spread across various payment channels and this increases the risk of fraud and noncompliance. This is where AI can help in avoiding fraud by auditing up to 100 percent of spending reports. AI-powered solutions can audit expenses and invoices at the point of submission. This helps in automatically identifying the anomalies and predicting patterns.
- Financial Protection and Control
AI-enabled applications can identify noncompliance issues in finance data. This system helps in automatically checking purchase orders, employee receipts, travel bookings, and credit card transactions that are made outside of the company’s policy. This allows finance managers in enforcing corporate policies and gains increased visibility into corporate spending patterns. Accountants and finance professionals can use AI solutions to assist with business decision-making.