Artificial Intelligence for Financial Roles: New Opportunities Abound

By David Radin, CEO, Confirmed

Artificial intelligence is already proving effective in many roles in manufacturing-related industries where data is plentiful, sensors could be placed strategically to understand current situations, and process is king.

It’s also taking hold in accounting roles.  One of the keys is to think beyond Generative AI, the type of AI that has been getting media buzz for the last year due to the big strides it has made recently in commercial viability.  Incorporating AI strategically into accounting practices can enhance efficiency, accuracy, and insights, but it’s crucial to do so safely and responsibly. Here are some safe ways to incorporate AI into accounting practices:

1. Improving forecasting and budgeting: Leverage AI-powered forecasting models to analyze historical data, market trends, and other relevant factors to generate accurate financial forecasts and budgets. AI algorithms can provide more accurate predictions and scenario analyses, enabling better strategic planning and decision-making.
2. Automating routine tasks: Use AI-powered software to automate repetitive and time-consuming tasks such as data entry, invoice processing, reconciliation, and financial reporting. This frees up accountants’ time to focus on more strategic activities while reducing the risk of human error.
3. Implementing AI-driven analytics: Utilize AI-powered analytics tools to analyze large volumes of financial data and identify patterns, trends, and anomalies. These insights can help detect potential fraud, optimize financial processes, and make data-driven decisions to improve business performance.
4. Enhancing fraud detection: Deploy AI algorithms to detect anomalies and unusual patterns in financial transactions, which can indicate potentially fraudulent activities. By continuously monitoring transactions and identifying suspicious behavior, AI can help mitigate fraud risks and protect the integrity of financial data.
5. Training and oversight: Provide training to accounting staff on how to effectively use AI-powered tools and interpret the insights generated. Additionally, establish proper oversight mechanisms to ensure the accuracy and reliability of AI algorithms and outputs. Regularly monitor AI systems and perform audits to identify and address any issues or biases that may arise.

Creating an organization-wide strategy to implement AI is imperative; and your use of AI in your accounting functions should live within the organization-wide strategy.  While there are some places in which the application of AI is easy to see, the implementation, safety, compliance, and competitive protection issues are less visible.  Among the issues you should consider:

1. Ensuring data security and privacy: Implement robust data security measures to protect sensitive financial information from unauthorized access, manipulation, or theft. Utilize encryption, access controls, and secure authentication methods to safeguard financial data stored in AI systems and prevent data breaches.
2. Maintaining human oversight: While AI can automate many accounting tasks, it’s essential to maintain human oversight to review AI-generated outputs, verify accuracy, and make informed decisions based on the insights provided. Human judgment and expertise are still crucial for interpreting complex financial information and addressing unique business challenges.
3. Compliance with regulations: Ensure compliance with relevant regulations and industry standards when implementing AI in accounting practices, particularly regarding data privacy, security, and ethical use of AI. Stay informed about legal requirements and regulatory guidelines governing the use of AI in accounting to mitigate risks and maintain compliance.

Creation of organizational best-practices and standard operating procedures along with a training program for your leaders and staff will help you avoid serious issues; and picking the set of tools that adhere to those practices will help you get the most of your AI investment.  Among the most important questions: should you rely on AI trained with public data or create your own AI.  Once you determine these types of strategies, you’ll be able to implement AI with lower risk and higher returns.

David Radin is CEO of Confirmed, a Pittsburgh-based productivity consulting and tools provider.  He is a Certified Dale Carnegie Consultant and certified in AI product management.