Why Radical Transformation of Finance Processes is sweeping the USA
June 29, 2018
Even the most conservative of businesses look to improve and adapt to keep ahead of the market. It’s common for managers to turn to better recruitment practices, process streamlining, outsourcing, or staff training when looking to increase efficiency and optimize profit.
While these traditional optimizations can all deliver significant improvements, the rise of revolutionary new digital technologies such as Robotic Process Automation, Blockchain and Artificial Intelligence means that business leaders are now able to shift to the next gear, blowing traditional ways of working out of the water and effecting radical transformation for their organizations.
Research from the Association of Finance Professionals (AFP) Mindshift shows that over 46% of organizations are actively planning to implement AI solutions, up massively on just the year before.
Initially, while these technologies such as AI were viewed by many as exciting (or even scary), they were less HAL 9000 and more WALL-E as they proved to be immature and not ‘business-ready’. This is now no longer the case. With years of development, in-business experience and proven results, AI solutions are fully mature and able to deliver ground-breaking business transformation when successfully implemented.
And now, senior management has caught on to the AI revolution. According to the recent KPMG US CEO Outlook, a staggering 91% of CEOs are personally prepared to lead radical operating model transformation, seeing digital transformation as the main, and in many cases, the only way to deliver significant change.
Finance professionals are in a unique position to align themselves with the transformation goals of the CEO. The accounts receivable department is an ideal candidate to take advantage of AI solutions as finance processes are resource hungry, data heavy, and they take a lot of time and manpower to keep track of customers and payments and understand what actions are needed.
The vast amount of data such as payment history, payment terms, credit rating, level of services, past relationship, time of the year, and company behavior all need to be taken into account, making financial processes lengthy, inefficient and manually intensive.
This is fertile ground for AI technology. Intelligent, machine learning capable solutions, such as Rimilia’s Alloc8 Complete Receivables platform can take thousands of data features and past cases instantaneously, analyze them and produce an accurate forecast for the future that suggests the very best decisions and actions to take.
In addition, organizations using lockbox services to handle checks can eliminate their reliance on manual keying (often costing up to 3¢ per keystroke!) with intelligent check reading that AI solutions provide. This automates the check reading process, eliminating the (often very) high cost of lockbox services, and reducing delays and human errors.
Couple the intelligence provided from raw data and the elimination of lockbox delays and costs, with the ability to reduce manual work by up to 70% (especially in cash application and bank reconciliation) and its clear why AI solutions are sweeping finance departments across the USA and the rest of the world.
Check out our Finance Professionals Guide to AI & RPA for more information on how to make sure you’re not left behind in the new AI revolution.