The world we know has changed – technological advancements continue to revolutionize various industries, and accounting is no exception.
With the emergence of Artificial Intelligence (AI), the finance and accounting sectors are witnessing significant transformations, enhancing efficiency, reducing errors, and unlocking new possibilities for professionals in the field.
Baltic Assist’s Senior Finance Partner, Kristupas Binkys, shares valuable insights into how AI is currently being applied in finance and accounting sectors and its implications for traditional roles and human analysis.
Application of AI in Finance and Accounting
According to research by Mordor Intelligence, The AI In Accounting Market size is expected to reach USD 6.62 billion by 2029, growing at a CAGR of 33.5% during the forecast period (2024-2029).
To reflect the current changes in the market, Kristupas initiated the utilization of various AI technologies to streamline our accounting and finance processes effectively.
OCR scanning tools like Corpay and BC Continia, Payroll Software extensions & Pleo, Kontolink for automated expense management and seamless API connectivity, Budget123, PowerBI or other API integrations for advanced reporting are instrumental in enhancing our operational efficiency.
"These tools collectively enhance our operational efficiency by automating data extraction from invoices, streamlining expense management, facilitating real-time data exchange between diverse systems, and generating insightful reports," notes Kristupas.
Furthermore, Baltic Assist's automation team leverages AI (RPA) tools to automate manual tasks, thereby minimizing errors and delivering strategic financial insights.
Adapting to Change
As AI continues to reshape traditional finance and accounting roles, professionals in the field must adapt by upskilling in data analytics and embracing new tools in the market. This adaptation is crucial to remain competitive and stay ahead of industry trends.
In fact, according to research conducted by the McKinsey Global Institute, at least 14% of employees globally could need to change their careers due to digitization, robotics, and AI advancements.
To stay competitive, it's essential for finance and accounting professionals to continuously enhance their skill set. This includes staying updated on the latest advancements in AI technology and understanding how they can be leveraged to optimize processes and drive business outcomes.
Moreover, Kristupas highlighted the significance of having a dedicated automation department within organizations. Such a department can play a pivotal role in identifying automation opportunities, evaluating AI tools, and developing in-house solutions tailored to the specific needs of the finance function. By investing in automation expertise, organizations can effectively navigate the complexities of AI integration and maximize its potential benefits.
"While AI presents numerous opportunities for efficiency improvements, it's essential to remain flexible and consider the specific needs of each department," highlighted Kristupas. "Some challenges may arise, especially in inventory management, and it's crucial to continuously evaluate the effectiveness of AI tools."
The journey towards AI adoption in finance and accounting requires a proactive approach characterized by continuous learning, strategic investment in automation capabilities, and agile adaptation to emerging challenges.
Balancing Human Analysis with AI Outputs
Despite the efficiency gains from AI-generated outputs and reporting tools, it's essential to maintain a balanced approach that incorporates both AI-driven insights and human analysis.
While AI technologies excel at processing vast amounts of data and generating actionable insights, human judgment and interpretation remain invaluable in contextualizing the information and making strategic decisions.
As organizations leverage AI tools for business metric analysis, it's important to recognize that these outputs are just one piece of the puzzle. While AI algorithms can uncover patterns and trends hidden within the data, human analysts possess the critical thinking skills necessary to interpret these findings in the context of broader business objectives and market dynamics.
"While AI-generated outputs can streamline business metric analysis, sometimes a well-prepared Excel template can be more practical," they remarked. "Reports are ultimately made to evaluate the situation and make decisions, and if a tool complicates the process, it may not be worth considering."
Reports are ultimately made to evaluate the situation and make decisions, and if a tool complicates the process, it may not be worth considering. Therefore, when working with our clients at Baltic Assist, we strive to strike a balance between leveraging AI technologies for efficiency gains and preserving the human touch in analysis.
By combining the strengths of AI-driven automation with human expertise, we can harness the full potential of data-driven decision-making and drive sustainable growth.
Looking Ahead
As we look ahead, the integration of AI in accounting and finance is reshaping the way professionals operate, offering unprecedented opportunities for efficiency, accuracy, and strategic insights.
As technology continues to evolve, maintaining a learning mindset and staying abreast of emerging trends will be essential for staying competitive in the finance and accounting industries.