Finance is experiencing a quiet revolution. Driven by a wave of technological innovation, financial expertise and technical skills are increasingly overlapping.
As highlighted in the report Secrets of successful CFOsToday’s finance leaders are at the forefront of corporate strategy, leveraging AI-driven analytics and teamwork across departments.
The report shows that the intertwining of technology and finance is more than just a trend – it is a fundamental shift.
As a tech-savvy finance professional, this has created an opportunity to redefine your role and improve your finance team’s decision-making and efficiency capabilities if you are willing to adapt and innovate.
Here’s what we’ll cover
Why AI is important in finance
A revolution in revenue growth and workflows
79% of CFOs surveyed believe AI will revolutionize workflows and increase revenue. The impact of AI on the financial landscape offers many benefits if you want to gain a competitive advantage.
Integrating AI into the heart of your financial operations improves analytical and forecasting capabilities, resulting in more accurate predictions and smarter, data-driven decision making.
This transformation optimizes financial performance by managing the flow of data and providing you with insights faster. It also drives revenue generation as AI identifies new opportunities and helps you capitalize on them.
Adopting AI in finance goes beyond the bottom line and also impacts the human aspect of the business
According to the report, 77% of CFOs have found that integrating AI has improved job satisfaction within their teams.
This improvement is because AI is great at automating routine and time-consuming tasks, allowing financial professionals to focus on more strategic and fulfilling tasks.
The report also highlights that CFOs who effectively integrate technology into their financial operations experience 20% higher job satisfaction.
So what’s happening right now?
AI can help increase productivity, create a more engaged and motivated finance team, fundamentally change workplace dynamics, and improve overall team morale.
AI becomes a great partner, taking over the cumbersome, time-consuming calculations and administration that would otherwise take hours of work, freeing your teams to focus on other, more business-critical things.
Adopting AI in finance is not just about keeping up with technology, but also about setting a new standard for efficiency, innovation and happiness in the workplace.
Impact on Regulatory Compliance
AI can help with regulatory compliance, a concern for every business. This can be achieved by eliminating human error and non-compliance risks by automating and refining compliance processes through the ability to enter, collect and evaluate data accurately and quickly.
For example, Sage Ai technology in Sage Intacct uses outlier detection to monitor real-time transactions and identify anomalies that could indicate fraudulent activity or violations of regulatory standards.
This feature demonstrates how AI-driven tools can help you maintain compliance with evolving regulations by automatically adjusting your compliance systems and processes to become more efficient.
Such proactive measures reduce financial risks and ensure more accurate and timely reporting, thereby protecting your reputation and legal standing.
The challenges of introducing AI
Collaborate with your technology suppliers
The path to introducing AI into your financial operations will not be without hurdles. One of the biggest challenges you may be concerned about is the significant costs required to implement AI technologies.
These costs can include the direct costs of purchasing new software and hardware, as well as the indirect costs of integrating these systems into your existing tech stack.
Fortunately, you may find that your current software providers (like Sage) are already integrating or in the process of integrating AI capabilities into their existing platforms.
Using cloud-based software and data storage also has the advantage that it can be accessed anywhere and updated remotely, rather than remaining isolated in physical offices.
This proactive integration by your vendors can significantly reduce the financial burden and complexity of adopting new technology because it is already built into the software you use.
This can reduce transition effort and allow you to leverage the full power of AI without the need for significant independent investment.
Educate your team
The report highlights that over 80% of finance leaders expect to spend more time on technical innovation, including deploying new systems and developing their teams.
Using AI well requires your teams to have a high level of digital literacy and technical skills.
Upskilling is a significant challenge, as highlighted by 61% of CFOs who plan to deepen their knowledge of new technology systems.
Proper employee training requires both time and resources. Your team will want to be familiar with new technologies so they can make the most of AI tools.
Ethical considerations
As AI becomes more widely used in finance, one of the responsibilities of a successful CFO includes assessment. It is essential to consider the ethical implications of AI before embracing it.
A key concern is the potential bias of AI algorithms, which can lead to unfair practices or discriminatory outcomes, particularly in credit scoring, customer service and hiring processes.
Ensuring that AI systems operate transparently maintains trust and integrity within financial services, but also within your role.
To do this, you and your partners must implement strict guidelines and regular audits to verify the responsible use of AI tools.
An ethical AI usage culture includes:
- Educate everyone involved about the potential risks and moral considerations
- Promote a broader understanding and cautious approach to AI use.
Johnny’s Selected Seeds and Sage Ai
Johnny’s Selected SeedsA staple in the agriculture industry since 1973, Sage Intacct has adopted AI-driven accounts payable automation, transforming its financial management practices.
Previously, manual, labor-intensive invoice processing was slow, and incorporating AI has shifted the business toward automated excellence, significantly improving operational efficiency and accuracy.
With Sage Ai, the company was able to halve the time needed to process invoices, enabling faster approvals and payments. Johnny’s Selected Seeds may move to electronic transactions to improve operations.
This shift improved financial accuracy and visibility and allowed the finance team to shift their focus from day-to-day tasks to strategic initiatives, creating a platform for a culture of innovation.
This transformation at Johnny’s Selected Seeds shows how AI in finance improves workflows and, when combined with the right software, plays a critical role in strategic business growth.
Future opportunities through AI
AI can quickly analyze large amounts of data and identify trends that may not be detectable using traditional methods.
Predictive analytics represents a huge opportunity
Using historical data, AI can help you accurately predict future financial conditions and market dynamics.
This foresight supports proactive decision-making, allowing you to mitigate risks before they manifest and capitalize on emerging opportunities before anyone else.
Such strategic advantages are critical to maintaining a competitive advantage in today’s fast-paced business environment. In fact, 78% of CFOs recognize that implementing AI in finance is essential to maintaining competitiveness.
Looking ahead, the introduction of generative AI tools like Sage Copilot offers even more possibilities
These advanced AI solutions are designed to collaborate with financial professionals, expanding their skills and enabling them to engage in higher-level strategic thinking and analysis.
For example, Sage Copilot offers interactive, intelligent support that enables:
- Help you manage your company’s finances more efficiently
- Make data-driven decisions quickly
- Easily navigate the complexities of modern financial environments
Final thoughts
Don’t think of AI as a technical upgrade, but rather as a crucial part of your strategic vision. This proactive approach will boost your financial operations, support your business goals and position you as a forward-thinking leader.
Equip yourself with the knowledge to take a leadership role in technology-finance mergers and strengthen your strategic skills to gain a competitive advantage.
Download the Secrets of successful CFOs and start transforming your financial approach today.
