Artificial intelligence won’t replace human financial analysts anytime soon, but it can play an important role in enabling companies to boost profits, lower operating costs, and increase cybersecurity. Erich Squire, who has more than twenty years of experience heading up finance, marketing, and human resource departments for large corporations, offers insight into what automation can offer and how it can be used to help a company realize its full potential and reach its long-term goals.
Know the Options
Corporate finance departments and financial consultants would do well to stay in step with AI-related developments that could impact their business and bottom line. After all, researchers have recently found that up to 45% of all tasks performed by employees could be automated with the right tools. These include automated payroll solutions, automated purchase solutions, finance analysis solutions, corporate tax solutions, and investing solutions. AI can also be used by retail companies to detect potentially fraudulent purchases and transactions. Moreover, a recent Harvard Business Review / Keystone study of 350+ firms to assess the financial impact of AI adoption showed a 50% boost in 3-year average gross margin and earnings.
In most instances, a company that wants to use AI in its finance department would simply need to assess the programs currently on the market and find the one that best suits its needs. However, Erich Squire points out that companies in specialized industries may need to hire a firm to either make custom applications or tweak an existing program in order to meet a company’s exact needs.
Getting Started
Erich Squire has never been one to shy away from trying new things. Even so, he cautions companies to take it slow when first incorporating AI into business processes. A gradual approach enables a company to see if a particular AI solution is the right fit for the business, and it allows time for those using the program to learn how it works.
At the same time, it’s important to ensure the AI-related solution is scalable. If a company needs more services in the future, it should be able to add these without disrupting current processes. If some services need to be cut back or cut out entirely, doing so should be an easy process that does not risk losing valuable data.
Stay in Step with Future Developments
Artificial intelligence keeps growing. New programs and applications are being developed all the time. What’s more, current applications are being improved upon to provide new, badly-needed services. The banking industry, for instance, has long used AI to streamline its own office procedures but is now using it to lower the risk of fraud and provide clients with customized financial plans.
Artificial intelligence is a boon for the financial industry as it frees consultants and employees to focus on helping a company reach its core goals rather than doing routine tasks such as searching for tax prep documents and keeping track of income and expenses. What’s more, AI also makes it easy for companies to collect, organize, and use data to optimize their own operations and provide more and better services to customers and business partners. As Erich Squire rightly asserts, it is well worth the time and hard work to understand the field and invest in it in order to reap the desired results.