In today’s changing business landscape, finance teams are facing unprecedented challenges. Inflation, geopolitical uncertainty and evolving regulatory standards are putting pressure on organizations to adapt quickly. But there’s a powerful solution emerging: artificial intelligence (AI).
Monica Proothi, Global Finance Transformation Leader at IBM Consulting, likens consultants to “doctors for companies.” Just as physicians diagnose and treat medical issues, consultants identify and solve business challenges. And for finance organizations, AI is proving to be a game-changing treatment.
“Research shows that when organizations scale AI across the finance function, they tend to become top performers and achieve higher ROI,” Proothi explained in a recent IBM film. This is because AI can optimize workflows and processes through automation and content generation.
Traditional AI excels at automating routine tasks like data collection and pattern recognition. But it’s generative AI (Gen AI) that’s truly revolutionizing finance. Proothi noted: “Gen AI helps you create content using deep learning models. These models analyze your existing data, learn its common patterns and structures, then use that information to generate something brand new.”
The impact of Gen AI on finance is profound.
“Gen AI can rapidly detect anomalies, explain variances, generate scenarios, create reports, and manage accounts,” Proothi pointed out. “For the first time ever, we’re able to automate complex workflows, tasks, and processes at speed.”
One area where AI shines is financial planning and analysis (FP&A). By combining traditional and generative AI capabilities, finance teams can make faster, more accurate decisions. This speed translates into quicker action plans that impact various aspects of the business.
However, adopting AI isn’t without challenges. Many CFOs are wary of potential risks like data security issues and biases. Proothi acknowledges these concerns but stresses the importance of proper implementation: “By implementing robust security protocols, establishing clear governance structures, and monitoring and adjusting AI models as needed, CFOs can mitigate the risks that come with incorporating new technology.”
For organizations looking to harness the power of AI, Proothi recommends starting with a clear strategy and pilot projects aligned with business goals. As finance teams become more comfortable with AI tools, they can scale their use across key financial workflows.
By embracing AI, finance functions can transform from reactive cost centers to proactive, strategic partners within their organizations. As Proothi puts it, AI optimization is “the optimal treatment plan” for embattled finance teams looking to thrive in today’s complex business environment.
