How CFOs Are Using AI to Transform Finance Operations

Do you want to find out a conversation topic you can discuss with literally anyone?

Try with AI 

That's right, artificial intelligence has become so quickly popular that it's quite unlikely not to discuss it daily.

And while we all know what ChatGPT can do for us, did you know that AI is also changing the way CFOs work? 

Chief financial officers are known for doing one of the busiest roles. They don't just have to oversee the finances of a company. They also need to be well prepared for constantly changing strategies according to what the market demands.

So automation?

Yes, that could be of tremendous help.

But what exactly does AI in finance mean for you?

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What's AI in Finance?

Artificial intelligence is changing our work pace. We are suddenly able to complete things faster and with more precision. For finance teams, it means relying on tools to organize data in ways that make sense for your business, optimize processes, make more informed decisions, and overall improve your efficiency.

Traditional AI Vs Generative AI 

Traditional AI has been accompanying us for a while now. It basically includes all the technology you would need to automate invoice management, payments, detect anomalies, provide recommendations based on past data, forecasting…

The list is long 

Generative AI, on the other hand, is considered the next step. It's not just limited to analyzing data, it creates things with the data it collects.

Say you want to spot patterns over a recent purchasing period, AI can create a report with all the necessary information in minutes.

With AI, you don't have to spend hours or days dealing with repetitive tasks. Workflows become simply more agile, and visibility stops being an occasional luxury. 

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Top Uses of AI in Finance Today

If you’re wondering where to start with AI, the good news is that you don’t have to do it at a big scale. 

Many CFOs begin with specific, relevant cases that solve everyday pain points or improve long-standing processes. 

Here are some of the most valuable ways finance teams are using AI right now:

Automated invoice and expense processing

Probably the most common beginning point for automation.

Invoice management is a heavy load for finance departments. Get a detail wrong and you could waste loads of money. AI is a wonderful solution for making sure invoices are reflecting accurate information, detecting duplicates so you don't pay twice for the same product, reducing fraud risk, and helping your team submit expense reports faster. 

Forecasting & scenario planning

The market is crazy these days. You've got political chaos, potential for a new financial crisis, disruptions, and climate change on top of everything. 

That doesn't mean you need to panic, actually, as a CFO, it's a sign that your work is about to become even more important. 

Thanks to advanced approaches like forecasting and scenario planning.

And while it's true that you don't need a crystal ball to make it right, you do need to work with accurate data that's in tune with the real world.

Entering: AI

Whether you’re planning for best case, worst case, or something in between, you get insights that help you make more confident decisions.

Fraud detection and risk alerts

The more your business expands, the harder it is to keep track of all that's happening. 

AI systems can continuously scan for unusual activity, detect potential fraud, and alert you in real time.

This kind of proactive monitoring helps you reduce risk exposure before it becomes a problem, and gives you more control over the finances of your business.

Financial close automation

Accounting is usually seen as that monthly headache no one can run away from. 

Well, you actually can.

With AI

Modern-day CFOs are implementing AI to automate reconciliation processes, detect missing or incomplete entries, collect data, and make closing the month less painful for everyone involved.

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Regulatory  compliance

Keeping compliant with regulations that change and appear at the blink of an eye might seem difficult, but once you start using AI, you'll realize it's pretty straightforward.

You have a system by your side recording all your company's activities, so you’re always ready for reporting, internal reviews, or audits. You’ll spend less time preparing and more time focusing on strategic priorities.

Cash flow optimization

AI also comes in handy if you want to prevent liquidity challenges by tracking inflows and outflows the moment they happen. It identifies patterns, predicts shortfalls, and suggests ways to improve your working capital. Instead of reacting to cash issues after the fact, you can take action early and keep your operations running. 

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Benefits of AI in Finance for CFOs

So yes, there's certainly a lot you can manage to do with AI by your side, but what are the real benefits of it? 

Better decision making 

When you are in charge of a department like finances, the last thing you usually have is exceeding time. 

So when it comes to making a decision, there are no long hours to waste. 

That's what makes AI so important and necessary.

AI gives you access to real-time insights that help you make informed decisions, without waiting days for reports or finding a way to understand dozens of spreadsheets. 

Cost-effective 

As AI plays a critical role in reducing manual workload and automating finance processes like invoice handling, reconciliations, and compliance checks, you don't need to invest in additional headcount, lowering processing costs.

Accurate forecasting 

Remember what we said about all the challenges affecting the market? 

Yes, you'd better be prepared.

With AI, your forecasts aren’t based on static spreadsheets. Instead, you’re using models that adapt to real-time data and trends.

Scalable

It's logical 

Once you've started to grow, you need to rely on a finance department that's ready to move with you. 

AI gives you the ability to handle more data, more transactions, and more complexity, without always needing to expand the team, so you can stay agile all the time you need it. 

Strategic planning

Choosing AI as a partner in your financial activities sets the foundation for better strategies. 

Instead of spending your time gathering data, you can focus on analyzing it, exploring scenarios, and guiding the business with confidence.

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Challenges CFOs Face When Working with AI

Like any major shift, adopting AI in finance comes with challenges, especially when it comes to data, people, and governance. Depending on your unique situation, you can find some things more difficult to handle than others, but generally speaking, there are a few key areas you’ll want to keep on your radar.

Data quality 

AI is incredible 

As long as it has good quality data to work with.

If your operations lack updated information and things are all over the place without clear direction, you won't get close to reaping the benefits we mentioned above. Before you scale any AI solution, you need to make sure your data is clean, centralized, and reliable. Otherwise, the insights could be misleading you.

Challenging adoption

Ideally, you want to choose a solution that doesn't make you and your team scratch your heads, feeling clueless. Automating financial processes isn't meant to be done overnight, but choosing a platform that requires weeks to try to figure out how it works just adds unnecessary complexity. 

Ethical concerns 

Whether it’s privacy, compliance, or governance, you’ll need to ensure your AI systems align with your ethical and regulatory standards.

AI bias

AI models can unintentionally reflect the biases in the data they’re trained on. If you're using AI for decisions that impact hiring, lending, or other sensitive areas, it's critical to understand how the model works and whether it's producing fair outcomes.

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