Humans have constantly sought to improve their quality of life across every aspect, and in this age of modern technology, artificial intelligence has become one of the leading vehicles in achieving just that. It is certainly a powerful tool that has even been implemented in the financial sector. But how exactly does AI fit into the daily number crunch?
One of the goals of AI has been to improve and ease daily tasks. Someone in the finance department, who gathers and analyzes masses of data daily would certainly welcome the various optimizations offered by AI. In this article we predict how the world of financial reporting is set for changes due to AI and machine learning.
However, in the world of computer-driven automation, AI is only a small player when compared to Robotic Process Automation (RPA). According to Magic Quadrant survey about cloud financial planning and analysis report shows that 46% of investors will invest in predictive analytics by 2021, with the second-ranked technology being RPA (43%), followed by AI (35%).
In this blog post we will present the top predictions of what the future holds for the finance sector.
1) Reporting Automation
According to Enterprise Resource Planning(ERP) reports, data extraction can now be automated as opposed to having it manually formatted into Excel sheets. This "old" approach is considered as time-consuming and error prone.
As such, for most financial specialists, having an automated system that offers easy access to real-time information while also sending reports and answering enquiries is the priority.
These are advantages that every financial analyst stand to gain, regardless of the size of the company, or the choice of ERP.
Hence, we predict that report automation will be an increasingly prevalent trend among organizations in the years ahead.
2) Robotic Process Automation
This term reflects what is going on in many finance departments today even if not entirely.
Studies report that RPA can reduce repetitive data entry tasks by 80% in accounts payable, financial close, and tax accounting.
RPA delivers increased productivity by mimicking human attitudes and behaviors, but it does not exhibit human characteristics and it is not a true simulation of human intelligence.
Rather, it serves as a conduit to enable AI in the future and will continue to grow in the future.
3) Intelligent Automation
AI plays a pivotal role in risk management and preparing for the future. By using AI and machine learning to create smart models, the financial sector would be able to utilize data to identify trends, highlight potential risks, and provide information for future planning. All of which can be achieved in minutes as opposed to hours when manually done by employees.
Based on the success of financial companies that adopted AI early, it is predicted in the coming 5 years most financial teams will be engaging with AI as the society transitions into the next stage of digital evolution.
Implementing AI in the finance sector in the years ahead will require staff in this sector to develop and refine their skillset to suit the changes. This is so that they can continue to efficiently carry out their duties in an AI-integrated work environment.
As technology advances, we too must actively advance ourselves. We can do so by predicting what lies ahead and preparing ourselves accordingly. In this rapidly advancing age, every business should stay up to date to ensure their business stays relevant.