By Mike Whitmire.
Here’s the truth: yes, AI is transformative. However, most conversations surrounding AI’s transformation potential have been about what AI can do for you, and while that’s definitely an important part of this technology, it’s only scratching the surface. Let’s reframe, though, and instead, talk about what AI can do with you. It’s not about plugging AI in and letting it rip on its own; it’s about making AI a coworker that you work alongside. Like any coworker, AI has strengths and weaknesses, and it’s up to you and your organization to figure out the best complementary arrangement that will transform the way accountants and CFOs do business.
Not Just Any Transformation
With all new technology, there will be those who leap headfirst into using it without stopping to build a framework for that technology or really interrogate the opportunities presented by it. When the “deploy first, ask questions later” approach is used, the idea of transformation stays just that: an idea. Real transformation comes from a thoughtful approach, intense collaboration, and familiarity with the technology being used.
Deploying AI isn’t a magic bullet that solves all problems instantly. Instead, it’s a powerful tool that, when integrated thoughtfully, can drive significant change. This means taking the time to understand the technology, its potential impacts, and how it can be tailored to meet specific needs within the organization. This approach involves not just the IT department but also the finance professionals who will be working with AI daily. By fostering a culture of collaboration and continuous improvement, organizations can ensure that AI is deployed in a way that maximizes its benefits and minimizes potential pitfalls.
A rushed deployment without proper planning and training can also lead to misuse or underutilization of AI. This could result in missed opportunities or even setbacks. For AI to truly transform financial operations, it needs to be embedded into the organization’s processes, with clear guidelines and objectives. This means developing a comprehensive AI strategy that includes training programs, regular performance reviews, and a feedback mechanism to continuously refine and improve AI applications.
The Opportunities at Hand
With AI technology firmly in hand, organizations have the opportunity to reshape and modernize their financial processes in a way that unleashes potential and supercharges the organization’s financial decisions with data-driven insights. The transformation opportunities can be specific—like focusing solely on powering up business applications or automating processes—or they can apply more broadly to the organization as a whole.
Perhaps the biggest opportunity AI is offering to financial departments is the ability to translate previously muddy or unusable data into intelligent information. Financial data can often be vast and complex, making it challenging to derive actionable insights. AI can analyze this data at unprecedented speeds, identifying patterns and trends that would be impossible for humans to detect manually. This can lead to more informed decision-making, better risk management, and improved financial forecasting, all of which require human accountants to work hand-in-hand with AI instead of just letting it loose.
AI also offers the potential for real-time financial monitoring. Traditional financial reporting processes can be slow, often providing information that is outdated by the time it’s reviewed. AI can continuously monitor financial transactions and performance, providing up-to-date insights that enable quicker responses to emerging issues or opportunities.
Joining Forces
With this thoughtful approach and thorough understanding of the opportunities to be gained, CFOs and accountants together can begin establishing the framework for a fruitful collaboration with AI. Treating AI as a coworker means remembering that it will only be as successful and productive as the time and energy (and data) put into it. Like a human employee, this means training, retraining, and gently correcting issues as they come up.
Forging Ahead
Without advanced technology, new collaborations, and fresh ways forward, transformation won’t be truly possible, no matter how small the scale. One survey found that over a third of accountants believe that AI is a competitive requirement—and they’re right. The competitive landscape is evolving, and those who fail to embrace AI risk being left behind.
Joining forces with AI doesn’t have to be a scary or clunky undertaking. In fact, it’s quite the opposite: it’s exciting, and with the right framework in place, it can be smooth and effective. This partnership between human expertise and AI innovation is key to navigating the complexities of modern finance. By working together, AI and financial professionals can create a dynamic, efficient, and forward-thinking environment that not only keeps pace with the fast-evolving business landscape but also sets new standards for excellence.
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Mike Whitmire is the CEO of FloQast.
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