How AI Is Impacting Accounting and Finance

Once a thing of science fiction, artificial intelligence (AI) is changing the business world in ways many only dreamed were possible. Now that the technology is making its journey into the accounting and finance sectors, industries that have largely remained unchanged are starting to shift

AI has the potential to impact accounting and finance in many meaningful ways, though some are concerned about how the technology will affect professionals, particularly as portions of their jobs are taken over by machines.

If you are wondering how AI is impacting accounting and finance, here’s what you need to know.

Automation

One of the biggest benefits of AI for accounting and finance professionals is the ability to automate repetitive tasks. For example, data can be entered into a single system, and the technology can then populate connected systems automatically. Categorization can take place with the click of a button, and patterns can be identified within the sea of entries.

Not only does this remove some of the tedious tasks associated with the field, but it also lowers the likelihood of errors. AI tends to be more accurate than people, so error rates can drop dramatically. This increases the level of efficiency within an organization, as issues are less likely to occur and finding problems can be done quickly. Additionally, meeting compliance requirements could also be simplified, especially if the AI is set up to handle tasks like reporting and form generation.

Productivity

As AI is used to automate certain processes, the overall level of productivity can increase. Since AIs can operate 24/7, data recording, analysis, and similar activities can be completed in shorter periods than if everything was being handled by an employee.

This also frees up workers to focus on tasks that truly require a human touch. Accountants and finance professionals can use larger portions of their days to function as advisors instead of dedicating hours to data entry and other time-consuming work.

Operations

The addition of AI to a workplace requires fundamental organizational change. Internal operations will change, so new procedures will need to be developed, and job descriptions must be altered to accurately reflect the tasks that fall into an employee’s area of responsibility.

Not unlike digital transformations, integrating AI into your accounting and finance operations reflects a significant change, and it must be managed properly. Before bringing AI into your workplace, it’s important to outline how the technology will be used and identify every individual who is impacted by the shifts.

Securing buy-in at every level is also a must. Many professionals fear AI will take over their jobs, leaving them unemployed. Typically, this isn’t the case, so it’s important to reassure your staff that, while the technology will change how things are done, it doesn’t eliminate the need for accountants and finance professionals.

If you are interested in learning more about how AI is changing accounting and finance, the professionals at The Squires Group can help. Contact us to speak with one of our skilled and knowledgeable team members today and see how our expertise can take the mystery out of AI in the workplace.

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