Exploring Artificial Intelligence for Accounting and Financial Forecasting

Posted by Infinit-O on May 22, 2018 2:03:17 AM

Topics: General Business, Automation, Virtual Accounting

Exploring Artificial Intelligence for Accounting and Financial Forecasting

Current developments in artificial intelligence (AI) and software automation are creating bigger opportunities than threats for most accountancy firms. With an almost limitless capacity to revolutionize how stakeholders make business decisions and interact with each other, AI is poised to become a transformative technology in this generation.

The Emergence of AI in Accounting and Finance

There are certain industries that are most susceptible to the impacts of AI. The most cited report from NPR predicts that:

  • Bookkeepers have a 97.6 percent chance of seeing their jobs automated.
  • Accountants and auditors have a 93.5 percent chance of seeing their jobs automated.
  • Financial analysts have a 23.3 percent chance of seeing their jobs automated.

To sum up, jobs that are made up of repeatable, systematic tasks have higher risk of being automated than those that require judgement, analysis, and people skills. So, if your current job often requires you to demonstrate those traits, then you need not worry.

AI is defined as the intelligence demonstrated by machines, in contrast to the natural intelligence (NI) displayed by humans and other animals. In computer science, AI involves the development of systems to perform tasks that normally require human intelligence, such as visual perception, speech recognition, and decision-making.

For Finance and Accounting, AI and automation are considered viable solutions for effectively dealing with compliance and risk challenge across various sectors. To remain competitive, companies are shifting from labor arbitrage and offshore revolution to automation revolution.

AI represents an opportunity to reduce the burden on finance professionals, particularly around traditional financial activities, such as transaction processing, audit and compliance. These activities in their current form prevent finance from being more strategic business partners.

Embedded AI: Key Differentiating Factor in Finance Systems

According to Gartner, Embedded AI will become a key differentiating factor in finance system evaluations, and software vendors with this capability will be able to highlight greater functional advantages. Adding machine learning and cognitive interactions to traditional business processes and applications enables improved user experience and productivity. Embedding ready-to-use AI and machine-learning capabilities across various services, including cognitive AI, analytics, data services, IT management, and security operations can make business operations seamless and better managed.

AI platforms will be a major boon for accountants in audit teams across the world and help increase audit quality and improve efficiency in providing more business insights. Many vendors have added AI capabilities to their financial management applications. Vendors that have a clear vision for embedding AI technologies in finance processes will be a better fit for financial organizations than those that don’t offer anything beyond the virtual assistant phase.

AI can Forecast Future Financial Results Based on Market Data Trends

The ability of AI to improve predictive (the future) and prescriptive (the best) financial forecasting processes will change the world of finance and accounting. Currently, financial forecasting and planning processes are manually intensive and affected by human biases to generate positive outcomes. Cash-flow and revenue forecasting, cost and expense planning, and balance-sheet planning are all areas of predictive financial analytics that will soon benefit from AI technologies.

AI Paves the Way Towards a Future of Empowerment

Instead of worrying for loss of job, accountants can look at automation technology as an opportunity. As accountancy continue to move into an AI-supported industry, CPAs and finance professionals can level up towards a more strategic advising role, ensuring that they offer greater value and more meaningful relationships with their clients. Although automation may ultimately replace manual calculations, accountants can make use of AI innovations and be empowered to provide an in-depth and personalized level of strategic analysis for clients.

Partner with F&A Experts

Consider outsourcing Certified Public Accountants (CPA) to handle your complex accounting and auditing requirements at reasonable costs. At Infinit-O Global, our Senior CPAs and Financial Analysts ensure timely, legal, and efficient management of your resources – reducing risks, ensuring compliance and driving cost savings. Our ISO 27001 & 9001 and Six Sigma certifications attest to our strict adherence to top quality and security.

We offer customized accounting and finance support and take pride in making things easy for our clients to outsource their business functions. Our goal is to make the process transparent, predictable, and results-focused. Feel free to fill out the Contact Form, we’ll be happy to address your inquiries promptly.

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