Migration to the cloud is well underway in the financial sector
Migration to the cloud is well underway in the world of finance and accounting. Finance executives are recognizing the benefits of cloud-based enterprise solutions, enabling them to become more agile and flexible. These solutions improve responsiveness and provide accurate, real-time data needed to stay ahead of an unstable landscape and transition to remote or hybrid work models.
A recent study by Sage found that among finance leaders, 91% agreed that companies need to use cloud-based software to thrive in the new world of work. The study also shows that finance leaders are eager to adopt cloud technologies to automate tasks, democratize access to data and increase accountability.
Yet there is another reason to adopt cloud technologies that are not yet as widely recognized: the fact that they will pave the way for finance teams to use artificial intelligence (AI) to elevate data-driven decision-making. data and take automation to new heights. Of the survey respondents, 92% said they would support their organizations by investing in AI-powered finance management solutions.
AI a proposal from the far future
When asked to list their top three priorities, AI came in at number eight, compared to using cloud-based systems at number one. Finance leaders ranked digital transformation, digital upskilling, and building a hybrid culture as their top three priorities. This suggests that many think AI is a proposition from the distant future rather than something that’s already here and maturing all the time.
The potential use cases for AI and machine learning (ML) in finance and accounting are plentiful, with cloud providers integrating the technology directly into their enterprise solutions. When integrated with accounting and finance systems, AI and ML can help automatically categorize expenses, flag policy violations, and spot trends and anomalies.
The power of AI and ML is that they can analyze massive datasets at speeds, levels of precision, and volumes that no human could ever hope to achieve. This, in turn, could enable finance managers to access real-time, quality business information that would help them make strategic business decisions. It could also automate many routine and repetitive financial activities.
Unleash the value of data and increase automation
AI and ML could, for example, learn to tag and assign transactions to the correct general account based on previous tagging decisions and rules. During an audit, AI and ML capabilities could quickly analyze large amounts of data to uncover anomalies. AI is also essential for creating chatbots and voice interfaces, which can help make financial systems more user-friendly.
By delivering these benefits, AI will support CFOs as their role evolves beyond compliance, record keeping and reporting, and more to become digital transformation experts who articulate the future of the company. AI will free them from many routine tasks that currently take up a lot of their time and give them valuable insights for an expanded role in the business.
The good news is that finance professionals who have embraced the cloud will be well positioned to leverage AI and ML in the years to come. Many of the features and tools mentioned above will start appearing in mainstream finance and accounting solutions sooner than many finance professionals expect.
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