From cars to phones to the Internet of Things, artificial intelligence is permeating all aspects of society, including business. Every aspect of the enterprise will find artificial intelligence useful; the key is determining which areas of your expertise could be aided by this advanced technology. Many financial services businesses and CFOs are already putting AI to work in a variety of overwhelming tasks.
Business technology has been around for decades, changing the way we work, think, and achieve, but AI is another level of assistance and transformation. AI not only automates tasks, but also learns, just as a human brain would, to improve or change the process the next time through. This quality has the potential to propel any type of business function into the future.
Using machine learning and complex algorithms, AI can process thousands of structured and unstructured data points. In a field that heavily depends on data, this capability can significantly impact how finance professionals do their jobs, innovate new processes, and improve the bottom line. The following areas of your financial department present opportunities for tremendous growth using AI.
The main advantage of using artificial intelligence in assistance with certain financial tasks is the sheer reduction of manpower. Saving time and resources by eliminating manual processes helps businesses focus on other areas of importance. AI is being used to pick up slack and slim the budget in one area in particular — meeting compliance regulations. The Wall Street Journal reports that even though banks have added thousands of compliance officers to their teams, they are still using AI to handle a compliance overload. As every transaction comes through, it is essential to ensure it meets all regulations in order to avoid fines and organizational disruption.
AI has the distinct benefit of being able to process transactions at much higher speeds than a human compliance officer. The efficiency of using this technology cuts through false-positives faster and can keep up with frequently changing compliance laws. This is critical to business success, so CFOs should exhaust all avenues available to reach and maintain compliance.
Because of the automation potential provided by artificial intelligence, auditors experience a freeing of responsibilities. They can use AI to automate traditionally time-consuming, manual processes, such as inventory and processing confirmations, to save time. In turn, they’re be able to focus more on analysis and insight.
Specifically, auditors can review documents and contracts with AI. Using machine learning, the technology pulls key terms and phrases from documents that previously took long periods of time to decipher and interpret. Now, AI instantly processes the language in a document and produces only the most relevant and necessary results for auditors to put into action. These results, with near error-free quality, improve how auditors do their jobs and understand each individual client.
One of the biggest struggles within finance is risk mitigation and management. Artificial intelligence can greatly change how finance professionals approach this area. Based on a recent survey, 49% of senior financial executives expect their organizations will use AI for risk management. That number is likely to grow as the parameters of AI become clear, and its use becomes more widespread.
This technology can catch issues and predict potential liability more accurately than human analysis, making it a stronger option when discovering and planning for risk. Tighter insight will help financial departments and companies avoid uncertainty and adjust other aspects of the finances accordingly.
As AI takes hold in these areas of financial operations, we could see a major shift in the way business is done. Just as email transformed our way of working and would now be devastating to lose, could we become just as dependent AI? The adoption rates will affect how well AI fits into the larger scheme of finance going forward. However, from what is being achieved and developed currently, an ubiquitous future of AI is not far off.