In their journey towards digital transformation, many enterprises are seeking ways to accelerate it to keep their businesses up and running while getting the biggest bang for each buck. Hence, they are reaching out to financial vendors who can enable their finance departments to find effective ways to streamline their business operations.
Enterprises across the globe are trying to embrace the digital revolution for the rapid growth of their businesses. Like every other department, finance is also trying to adjust to the new reality and implement the best solutions to keep up with the market. The inclusion of public clouds has changed the way for enterprises to implement, deliver and manage applications. But the availability of the range of cloud-based applications, as per experts, isn’t making a fundamental difference between the new and updated applications and traditional ones. Enterprises are struggling to optimize their expenses, and the uncertainty in the financial ecosystem is only making it difficult for them to efficiently manage their business finances.
However, all this can change if artificial intelligence is integrated into financial management applications. “AI can help businesses to focus on what matters. It helps them to identify things that are going wrong,” says Bjoern Herrmann, VP of Sage AI Labs, in a podcast with EnterpriseTalk. As per Bjoern Herrmann, enterprises that are willing to invest in AI technologies will have a greater chance to grow their business at a rapid pace. AI can help enterprises to enhance their financial system evaluation and develop exceptional products and services for their customers.
AI will enable the finance department with generic and embedded AI applications
“Most companies are failing their AI projects because they haven’t set up their required infrastructure or because they don’t technically manage certainty that was with projects being with them,” says Bjoern Herrmann. He further adds, “All of the new AI projects have a lot of uncertainty; it is a new way of building products, there’s a lot of new things to learn; new business models to come along with it.”
Even though the finance department has added AI capabilities to their financial management applications, the majority of are just delivering generic AI applications in the form of bots, chatbots, and virtual assistants. These factors do not help the finance department of an enterprise to justify the investment on significant time and money. Therefore, it is critical that the finance department outline a clear vision before embarking on integrating AI technologies into finance processes.
Improving the transaction-processing efficiency
Even in today’s digital ecosystem, many finance departments across enterprises are sticking with financial forecasting and planning processes that are manually intensive and often suffer from inherent human biases. However, the implementation of AI technologies such as machine learning and algorithm-based machine reasoning can change that.
With the automation of routine finance processes as well as the elimination of the need for manual intervention, financial management applications and enterprise resource planning (ERP) can significantly enhance transaction-processing.
Listen to the Podcast an Interview with Bjoern Herrmann, VP of Sage AI Labs
Predicting future financial results
As mentioned in the previous section, many financial forecasting and planning processes are manually intensive. They suffer from human psychology’s biases, where the leaders may tweak the predictive models to generate favorable outcomes.
With the implementation of AI technologies, enterprises will be able to accurately predict financial analytics in areas such as revenue forecasting, cash-flow forecasting, balance sheet planning, cost and expense planning and much more. Bjoern Herrmann reflects on it, “Leveraging AI can help enterprises to build datasets that can be turned into APIs and that can help decisions to direct to provide benchmarks, to help identify problems, to find opportunities.
Enterprises can use those APIs for recommendations on top of those problems and opportunities to get a business as close as possible. These business insights can help the finance department to make informed decisions.”