Finance leaders are no strangers to the complexities and challenges that come with driving business growth. From navigating the intricacies of enterprise-wide digitization to adapting to shifting customer spending habits, the responsibilities of a CFO have never been more multifaceted.
Amidst this complexity lies an opportunity. CFOs can harness the transformative power of generative AI (gen AI) to revolutionize finance operations and unlock new levels of efficiency, accuracy and insights.
Generative AI is a game-changing technology that promises to reshape the finance industry as we know it. By using advanced language models and machine learning algorithms, gen AI can automate and streamline a wide range of finance processes, from financial analysis and reporting to procurement, and accounts payable.
Realizing the staggering benefits of adopting gen AI in finance
According to research by IBM, organizations that have effectively implemented AI in finance operations have experienced the following benefits:
- 33% faster budget cycle time
- 43% reduction in uncollectible balances
- 25% lower cost per invoice paid
However, to successfully integrate gen AI into finance operations, it’s essential to take a strategic and well-planned approach. AI and gen AI initiatives can only be as successful as the underlying data permits. Enterprises often undertake various data initiatives to support their AI strategy, ranging from process mining to data governance.
After the right data initiatives are in place, you’ll want to build the right structure to successfully integrate gen AI into finance operations. This can be achieved by defining a clear business case articulating benefits and risks, securing necessary funding, and establishing measurable metrics to track ROI.
Next, automate labor-intensive tasks by identifying and targeting tasks that are ripe for gen AI automation, starting with risk-mitigation use cases and encouraging employee adoption aligned with real-world responsibilities.
You’ll also want to use gen AI to fine-tune FinOps by implementing cost estimation and tracking frameworks, simulating financial data and scenarios, and improving the accuracy of financial models, risk management, and strategic decision-making.
Prioritizing responsibility with trusted partners
As finance leaders navigate the gen AI landscape, it’s crucial to prioritize responsible and ethical AI practices. Data lineage, security and privacy are paramount concerns that CFOs must address proactively.
By partnering with trusted organizations like IBM, which adheres to stringent Principles for Trust and Transparency and Pillars of Trust, finance teams can ensure that their gen AI initiatives are built on a foundation of integrity, transparency, and accountability.
Source: ibm.com
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