Artificial intelligence has been a game changer in the business world for some time. But with the emergence of technologies like ChatGPT, the topic has become a red-hot discussion point that has boardrooms across industries buzzing. And for good reason—with the ability to automate routine tasks and analyze massive amounts of data, AI promises teams the allure of improved efficiency, accuracy and productivity.

And while AI is and can be used across a variety of industries for many different purposes, one of the areas where it has become increasingly valuable is finance. As businesses navigate an uncertain economy, many are turning to technology to battle some of today’s biggest challenges, including managing risk, elevating the customer experience and ultimately increasing cash flow.

Let’s look at four ways your finance team can leverage AI.

1. Boosting Efficiency

One of the primary benefits of AI in finance is increased efficiency. Look for repetitive and time-consuming tasks that you could automate with AI, such as data entry, compliance checks, invoice and remittance processing and collections. Automation not only reduces the workload of human employees but also allows them to focus on their strengths and maximize productivity. Furthermore, AI’s capabilities ensure consistency and accuracy, reducing errors and costs.

When your employees are no longer burdened by tedious and error-prone tasks, this can lead to a more satisfied workforce while also allowing your team to allocate time to other areas that lead to better business outcomes. While there is much chatter about technology replacing jobs, the truth is that AI can be a powerful supplement for human employees, allowing them to do more with less.

2. Managing Risk

AI is a powerful tool for finance teams to analyze data and identify potential risks. By analyzing things such as buyer payment patterns and other financial indicators, AI can detect patterns that might suggest a market decline. This enables your team to take preventative measures that can minimize potential risks

Furthermore, you can use AI to create credit lines, which drive sales growth but can also represent risk. The technology’s ability to analyze large amounts of data accurately can enable more informed lending decisions, which is becoming increasingly important against a backdrop where payment delays are increasing.

3. Detecting Fraud

You can set up AI algorithms to identify anomalies and suspicious activity that may not be detectable by human analysts. This allows your team to quickly detect and prevent fraud, reducing the risk of financial loss. AI systems can also learn and adapt to new patterns of fraud, making them highly effective in staying ahead of the constantly changing tactics used by bad actors.

One of the most successful applications of machine learning is credit card fraud detection. Algorithms can learn from vast amounts of historical payments and transactions data, allowing them to label events as fraudulent or legitimate.

4. Elevating The Customer Experience

Finance teams, namely those tasked with accounts receivable, are responsible for ensuring that customers pay their bills on time. However, the process of invoicing, reminding and collecting payments can often be time-consuming and frustrating for customers. You can improve the customer experience in AR by automating many of these processes.

For example, your team can take the insights AI generates and leverage those to send personalized payment reminders, making collection efforts more successful and enabling buyers to stay on top of their payments and avoid late fees.

Additionally, AI can help your team identify customers who are at risk of defaulting and proactively work with them to develop payment plans. By leveraging AI, your AR team can strengthen customer relationships and ultimately improve the bottom line.

Separating Hype From Value

While AI can perform some extraordinary feats, implementing it is not a silver bullet solution. It’s important to have a clear understanding of your organization’s needs and goals before weaving it into your processes. This includes identifying specific pain points that the AI can help resolve, conducting a cost-benefit analysis and ensuring that the solution selected complies with regulatory requirements.

It’s never a good idea to make an investment based on headlines or buzz but especially so in an environment where brands must be conscientious with how they allocate their resources. AI can be expensive and sometimes requires additional investment in infrastructure and training. AI is also complex. Even the most user-friendly solutions require a level of expertise to implement and maintain.

Still, AI can be a great tool for streamlining processes, reducing risks, detecting fraud and enhancing customer experience. By leveraging AI, your business can increase efficiency, accuracy and productivity, leading to better business outcomes. And by taking the proper steps beforehand and deploying AI with care, you can ensure your AI realizes it full potential.

LeackStat 2023