The finance department has been undergoing a lot of change in the past two decades. The modern technology of the 21st century has had a significant impact on our lives in countless ways. The finance department of companies certainly wasn't exempt from these changes.
The good thing here is that most of the changes are very positive. What’s more, many of these changes have brought about improvements that have changed finances for the better.
Many of the changes have made it essential for companies to adapt and start using as much of the technology as they possibly can. That’s certainly the case with AI.
In this article, we wanted to discuss the six main ways of how AI is changing the finance department. Let's take a look at what you and your business can expect with AI.
- Efficiency will skyrocket
- The employees will turn more to advisory positions
- Big firms will not be the only ones enjoying the benefits
- Online security will improve
- Chatbots will get better and more useful
- Trading and Cryptocurrency trading will improve
Humans are very efficient, especially those with a lot of experience and knowledge in their industry. The finance department will always benefit from the talent that works in it.
However, humans can only do so much. The industry has long since noticed that and started implementing new technologies to make the whole department more efficient. Automation has done a lot for the industry with:
- Algorithmic programs which automate many vital processes
- Trading bots
- Strategic tasks
- Providing vital advice
- Identifying process improvements
- Improving the finances of the company
- And much more
- Offer the same technologies for a smaller price
- Save time and money for your business by handling the operational side
- Enable your CFO and other employees to focus on the strategic aspects and other more vital tasks
- Analyze vast amounts of data
- Detect fraudulent transactions faster than human analysts
- Improve how fast real-time transactions are approved
- Reduce the number of incorrect declines
- Are cost-effective
- Are easy to use
- Provide answers on finance & accounting questions
- Create efficiencies in the Q&A exchange
- Offer 24/7 support
Automation is just a small part of this. Companies are increasingly using machine learning and AI to improve a vast number of processes that were previously done manually.
The finance department will become more efficient as AI is improved, and its uses in finances become broader over time.
Many fear that robots and AI will take over their jobs. In some cases, it makes sense. However, in the case of the finance department, this can only be a good thing.
Mundane and repetitive tasks are already being taken over by bots and AI, while the employees are left to focus on other more vital tasks.
The CFOs and other professionals are left to concentrate on:
All of that is already happening, but it will only get better. Finance professionals will not lose their jobs, but they will have an opportunity to learn new things and become advisors and strategic leaders in their companies.
One of the main problems with AI and automation has been the fact that many of the systems were only available for the most prominent companies. Growth companies were not able to enjoy the benefits.
However, all of that has begun to change.
Growth companies are now able to use third-party service providers, which offer the same benefits the big players enjoy.
All of this will continue to change and improve as third-party providers make sure to follow the changes. We at Consero make sure we are at the forefront of the change so we can offer the best service to our clients.
In the not so distant future, the size of the company will not matter much, as most of the technologies that make firms better will become available to everyone.
Another way AI will be of use to the finance department, and the company as a whole is in online security.
Online security is essential for any firm as online fraud is increasing and affecting companies of all sizes.
Machine learning can already:
All of that will only improve with the help of AI, and your online data and transactions will be much safer. AI will undoubtedly:
That's only the beginning, and AI is likely to bring even more benefits to online security.
Chatbots are already an important part of many companies. They are used in customer relations and banking.
With the rise of AI and its further improvement, chatbots will only get better. They are already transforming the business models of many notable companies.
Chatbots help out companies in several ways as they:
The existing processes chatbots can perform will only get better as AI technology improves. What's more, we are likely to see new, more complex tasks they'll be able to perform.
Machine learning is already much better in stock trading than actual humans. However, this is only the start, and the technology will grow even further.
The same can be said about cryptocurrency, as its market is very volatile, mostly due to human emotions.
However, AI does not have emotions, and it is thus unlikely to make mistakes as humans do.
In the near future, AI will enable companies to get better in stock and cryptocurrency trading. What's more, it will allow companies to get better at trading as algorithms are more likely to identify many complex trading signals. Most of these signals are rarely noticed by humans. That's especially true for markets which are often depressed due to blind pessimism, just like in the cryptocurrency market.
The Bottom Line
So there you have it, the six main ways AI will completely change the finance department. As you can see, it’s vital to follow the trends if you want your company to be as successful and efficient as all others.
If you’re not already, you should start learning all the ways you can use AI for your company’s finance department. It will undoubtedly be of great use for your bottom line.