Expect to reap the dividends of AI optimization in finance functions

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Most of Canadian company always explores the potential of artificial intelligence across their operations, but finance is one area where the technology is already proving its worth.

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Canadian executives say 82 percent of their companies use AI in finance, compared to 71 percent globally, according to a survey by KPMG International Ltd. report on AI in finance published in December. Accounting is another industry where AI adoption in Canada is highest, with 43 percent saying their organization has adopted AI and 34 percent are testing it, compared to 36 percent and 28 percent , respectively, on a global scale.

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Given AI’s ability to handle repetitive tasks and analyze large amounts of data at lightning-fast speeds, it’s no surprise that this technology is gaining popularity in the accounting and finance fields. financial information. The KPMG report states that most AI leaders also use the technology in financial planning, treasury management, tax operations, risk management and cybersecurity.

“This is really shaking up finance,” said Chris Moore, a partner at KPMG Canada who leads the financial transformation group.

Rather than spending time crunching numbers and reconciling, finance professionals can better utilize their skills, perform predictive analytics and take on a “financial business partner role,” he said.

But despite growing excitement about the potential of AI in finance and the many use cases proving its effectiveness in terms of efficiency, Moore said organizations must create the infrastructure necessary to maintain and make evolve AI models as businesses grow. He points out that previous iterations of generative AI with robotic process automation (like robots used to automate repetitive tasks) have not taken off as expected.

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“It got a little stuck because a lot of the skills needed to improve and maintain these tools weren’t developed within the organization,” he said.

As AI tools become increasingly used in the financial space, having the appropriate protocols and governance mechanisms in place to protect sensitive business and customer data will also be paramount.

“We’ve been talking to our customers about trustworthy AI… because it’s going to be very important not only to employees, but also to stakeholders in an organization,” Moore said.

Beyond accounting and financial reporting, companies should also harness the power of AI to create real value for their businesses, said Moore’s colleague Aris Kossoras, banking partner at KPMG Canada.

“If we focus too much on applying AI to increase efficiency in finance, we’re missing the boat,” he said.

Even if you think AI is overrated, don’t underestimate it.

Aris Kossoras

Instead, creating value that will increase a company’s top line, improve the bottom line, and increase customer profitability will have a much greater impact.

“Even if you think (AI) is overrated, don’t underestimate it, especially in the long term,” Kossoras said.

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To that end, he said organizations need to think now about how to create these “skills of the future” within their finance function, because employees don’t always have the data savvy or digital savvy to be able to interact productively with AI models.

Looking at some of the most successful organizations Kossoras has worked with in global banking, he said there is no “silver bullet” when it comes to changing finance skills to optimize business. ‘AI.

In addition to reskilling existing staff, he said it could be beneficial to “borrow employees” from other departments that might be closer to the front office and other risk functions and have a higher standard “data DNA”.

For those who don’t want to risk being left behind, it pays to become more familiar with AI now to understand how to use it to your advantage, said David Trahair, a chartered professional accountant and best-selling author who operates its own personal finance training and e-learning content business and conducts on-demand seminars for chartered professional accountants across Canada.

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“The best thing they can do is embrace it…and be interested in when (the new platforms) come out,” he said. “The employees who aren’t interested in it are the ones who are at risk, whether it’s in accounting or any other field, because (AI) makes a lot of things more efficient and even more creative.”

Based on his own experience, Trahair compares having ChatGPT to having a “very smart consultant” who ultimately helped him improve his business. Instead of listening to podcasts on his walks, he spends 45-50 minutes asking questions and interacting more with the AI ​​to gain valuable insights for his own strategic planning.

“Then I’ll say, ‘Please summarize this into key points so I can put it out in a note,'” he said. “It’s incredibly creative and thoughtful and it listens to you.”

Such intuitive technology also evolves “at breathtaking speed,” Trahair warned, so training must be constant and always up to date.

“I wouldn’t pay a cent for a course produced a year ago on OpenAI and ChatGPT,” he said. “It has to be the last three to six months, otherwise it’s just totally outdated and a waste of time.”

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