AI in Accounting and Finance: How AI Will Impact theses Industries?


Himanshu Singh

Senior editor

Parul Saxena

Chief editor

Last updated: July 12, 2021

Artificial Intelligence is the present and the future of technology. It is one of the most crucial technologies, which has revolutionized the way we work.

Along with robotics, AI is fundamentally reinventing the workforce. To define it in simpler terms, AI is intelligence demonstrated by machines, instead of humans.

Artificial Intelligence in Accounting and Finance

As companies rely heavily on numbers and data, the automation offered by intelligent learnings system makes these companies the primary candidate for enjoying the benefits.

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As this field is comparatively new, when it comes to the finance sector, we need to understand how artificial intelligence can help solve business and accounting problems. It will help to reduce tedious tasks and free up time for the financial task force to take up other responsibilities.

How can AI in accounting and finance, be a boon?

There are various ways by which AI can be a boon to the financing sector, which are as follows:

1. Streamline data entry and analysis

It helps the financial analyst team save time. Machine Learning, a branch of AI reads receipts, scripts from images, pdf, excel sheets and can classify them according to their spending and populates the analysis and reports, all at one place without much hassle.

It can give the company an idea of their spending patterns as well as give clients business-related solutions for things as optimal budget forecasting.

2. Reduce fraud

The money spent on the company is becoming decentralized these days. Today, employees spend money on a wide range of platforms. According to the Association of Certified Fraud Examiners, a company loses almost 5% of its money to internal fraud.

Even auditors can only calculate up to 10% of these expense reports annually. However, on the other hand, AI can audit 100% of the expense reports and can easily detect the internal treachery and fraud before the onset of reimbursements.

3. Procurement

The tracking and procurements, for different companies, compiles an immense amount of paperwork and often one file might not be compatible with the other one, which makes the entire task tedious and time-consuming.

However, machines with API can be integrated and the entire task becomes a lot easier as well as paperless. AI can help to track the change in prices among multiple suppliers.

4. AI Chatbots

Chatbots software help to have an efficient system where user’s queries get resolved more easily. It allows the user to interact with the company, place requests, make complaints as well as provide suggestions to work on.

5. Healthcare

Machine Learning can analyze a large number of data. It has helped to detect various kinds of diabetes and the detection of brain data.

6. Recruitment

Usually, a recruiter would dedicate 10-15 minutes to sort out a resume. But now with the help of AI in recruitment software, the top 15 resumes can be proposed based on the job criteria and skills required.

Hence AI can help save infinite time and yield better results, by cutting down on such mundane tasks and making lives easier.

AI’s scope in the future

According to a report by Deloitte, all the jobs related to audits, tax, payroll, and banking would be completely automated using AI. It relieves the accountants of performing menial tasks and broadens the scope of their roles. AI will ensure a significant economic gain in higher-skilled employment.

Accountants would no longer have to look at the VAT numbers and dates via the receipts. This relieves the accountants of such administrative tasks and performs more efficiently and delivers more value and services to the team and the company.

It will also help to ensure that clients get better services, as well as help in the growth of the company and the success. Even if the machines can perform the internal audits and calculations, a human would be required to analyze the results and draw meaningful conclusions from it. This will allow the accountants to be able to give consultations as well as be a part of the advisory team based on the data provided by the AI integrated machines.

This will help the business to prosper and more effort can be put up on performing more important tasks like financial planning, budgeting, process improvement, etc.

Changing the human mindset

The only problem we face in implementing AI is getting people acquainted with the idea of it, getting them on board with the fact that their tasks would be replaced by intelligent machines. Many professors at MIT and the people at Boston Consulting Group are convinced that AI will only help the company to achieve sustainable profit.

Only accountants need to understand the criticality of these machines as well. They can utilize their time in providing deep meaningful insights to the company. For these people to understand the value of the tech tradition as well as embrace it, they must be provided with training and understand how to use the AI to their advantage. 

Also, Read: Effect of Big Data On Accounting and Financial Services

Final Words

As the technology is getting sophisticated, the accounting and finance software are also incrementing and is turning out to be time-saving as well as profitable for the company in the longer run.

Hence, the sooner the accountants stop resisting the change and accept it, the company would be in an economically better state to handle internal affairs.

Himanshu Singh is a Marketing Specialist at SoftwareSuggest, He is well versed in software platforms like eCommerce, project management, document management. He is also interested in domains like Machine Learning and Semiconductors. In his spare time, he enjoys Guitar, Badminton, and Photography.

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