Driving the finance function forward with AI

Matthew Rodgers at OneStream Software charts a new path for business growth  

Within the ever-evolving global economic landscape, finance leaders are confronted with an array of challenges, from geopolitical uncertainties to ever widening skills gaps. To navigate these complexities and remain resilient, progressive finance professionals are turning to Artificial Intelligence (AI) and Machine Learning (ML) to streamline traditional practices. 

Innovations in AI and ML hold huge potential for business growth and finance productivity. In a function that’s facing increasing demand, these technologies provide real-time insights and quick, informed decision-making. 

Plugging gaps by encouraging talent 

With nearly half of CFOs reporting a lack of talent needed for forward looking finance operations, AI emerges as a core solution to meeting the demand for expertise in digital and data analysis skills.  

Fewer people are entering the finance profession than ever before, with 90% of employers experiencing skills shortages.  

It’s becoming apparent that this technological revolution isn’t just about tools, rather, it’s about cultivating an environment that encourages the next generation to contribute their creativity and expertise to the evolving world of finance.  

Whilst AI-driven solutions streamline operations, with 80% of leaders believing it will enable increased productivity and efficiency, it also creates more varied roles for interest, ushering in a new wave of talent who not only want to have a hand in finance, but also innovative technology.  

As financial teams leverage the technology maximise the value of their data, AI also helps plug the skills gaps within their teams. It enables them to look beyond the balance sheet and apply themselves more within core business operations to spearhead strategic initiatives. 

In our latest global survey, 72% of leaders said AI will create opportunities for new jobs in accountancy and finance, generating capacity for business leaders to be more strategic in the face of economic change. It’s those who leverage AI tools who will be most resilient. 

AI forecasting with confidence 

As volumes of data increase more than we ever thought conceivable, being able to accurately forecast is getting more and more complex.  

Our survey revealed that the areas where AI has made the most significant impact are financial reporting (74%), financial planning (67%) and demand forecasting/sales planning (60%). Many finance leaders are also finding that AI and ML-powered FP&A solutions allow indirect relationships to be accounted for, which would be left unobserved otherwise through human-led methods.  

These include data ingestion and quality, feature generation, model building, all the way through to dashboard analytics. Not only does this result in streamlined forecasts, but also allows scenarios to be generated at any scale and granularity, significantly enhancing decision-making capabilities. 

The advantages are becoming clearer as teams can generate faster and more accurate forecasts, delivering higher business impact through efficiency and reliability. As we approach the end of the tax year, the leaders who close their books quickly and confidently will likely be the those who have implemented AI innovation. 

Trends and future planning 

The enhanced capability that AI and ML brings is essential in a constantly changing financial landscape marked by challenges and concerns about potential economic downturns. 

We see many businesses still operating in data silos using traditional methods. This can cause them to miss out on the opportunities to more deeply analyse the past, to predict the future and adapt their business strategies. 

Given the challenging past few years economically and geopolitically, it’s more important now than ever to financially transform, especially with the regulatory compliance landscape evolving at speed. 

This year, ESG will be top of mind as the EU’s Corporate Sustainability Reporting Directive (CSRD) comes into full force. Businesses must make use of the AI fuelled financial and reporting technology available to evaluate risks and opportunities and identify the best course of action. 

Our survey found that over half (58%) of UK finance executives foresee AI becoming a core component of financial processes. I believe, the leaders who will be ahead of the curve are the ones who look towards taking advantage of these turbulent times as an opportunity to do more with less. 

AI in finance for 2024 and beyond 

AI isn’t just important for technological advancement – it’s crucial for enhanced productivity and efficiency too, becoming the heartbeat of financial operations.  The future of a successful finance function lies in the ability to embrace innovation. 

As many companies and industries will continue to face economic headwinds, AI is the co-pilot to help guide finance professionals’ futures in 2024, helping them plan, prepare and weather any potential storm. 

Matthew Rodgers is Executive Vice President, EMEA at OneStream Software 

Main image courtesy of iStockPhoto.com