How Automation Is Changing the Function of Finance
Advanced Artificial Intelligence (AI) innovations are changing the financial services industry in a fundamental way. In particular, the financial sector has acknowledged AI’s economic benefits over the past few years. Those include extracting new insights from existing data, for example, to automate credit decisions and enhance financial risk management, automating business processes that previously needed manual human interaction, and improving customer engagement through smart chatbots. AI is genuinely transforming the sector with “frontier financial services companies directly attributable to their AI programs achieving companywide sales growth of 19 %.”
In recent history, the role of finance has been constantly evolving. It initially focused heavily on collective arbitration and shared service models, but finance soon realized that process standardization and centralization were absolutely essential to improve modern organizations’ productivity and effectiveness.
Automation: The main tool freeing enabler for the function of finance
There is no question about the need to simplify the funding processes further. Today, most finance staff are busy managing the financial company and caring for organizational activities. It is left with insufficient time and money to concentrate on value-adding tasks such as offering analytical insights. Automation serves as a key enabler to free up to certain resources that are desperately needed. Now finance professionals can not only provide real-time insights into the company’s current position, but they can also look into the future with sophisticated predictive analytics and proactively guide the business.
For many technology providers, automation has thus become a key competency and goal. The belief that computers and machines can do things quicker, more accurately and more efficiently than humans have always inspired these providers. Nevertheless, the advent of emerging technology such as chatbots, machine learning, and robotic process automation has brought automation to a whole new stage, making things possible that were never before.
Recent reports show that world-class companies, pioneers in productivity and performance, are re-allocating free-up capital to value-added activities. They put the financing company in the finance and business transformation projects driver’s seat.
Written by: Jimmi Chandra