As artificial intelligence (AI) software becomes more sophisticated, corporate accounting departments are in for a shakeup, according to new research.
The survey, which was conducted by Censuswide on behalf of accounting automation software provider BlackLine, found that 78 per cent of financial professionals believe AI technology will play a ‘significant’ role in their department, while 29 per cent expect the role to be ‘very significant’.
Asked to nominate the areas within the finance department expected to be most affected by AI, 60 per cent of respondents nominated the accounts payable and receivable functions, while 49 per cent said AI will allow the automation of reconciliations. Twenty-seven per cent said the tools will complete the financial close.
“These responses demonstrate that financial professionals understand the growing power of AI tools and the implications this has for the functioning of the finance department,” said Ann Furlong, APAC director, BlackLine. “Job roles and workflow processes will radically change during coming years as usage of the technology becomes more widespread. This will allow accountants to shift from routine tasks into roles that add a higher level of value to their companies.”
Perhaps alarmingly for some, a third of respondents believe AI tools will undertake strategic financial decisions. This raises the question of liability – for decisions that result in regulatory non-compliance, a fine or a fall in share price, for example. Topping the list of liable parties in this situation, according to the respondents, was the accounting department (19 per cent), the Chief Financial Officer or Finance Director (18 per cent), the Chief Executive (17 per cent) and the IT department (15 per cent)
“Clearly there are differing opinions on where ultimate responsibility should lie when it comes to the decisions made by AI tools,” said Furlong. “This is something that will need to be carefully considered at the board level before key finance decisions are left in the hands of software.”
The penetration of AI software is already underway, with 27 per cent saying AI already has a role in their finance department, and only 15 per cent indicating they have no plans to deploy the technology this year.
To achieve success with AI, Furlong said tools must be carefully evaluated prior to deployment, and any changes they will make to workflows clearly communicated. Staff also need to understand how AI will reshape their roles and the benefits it will bring.
“Rather than being something to fear, AI has the potential to deliver significant benefits to the finance department. Supported by intelligent tools, staff will be able to shift their attention from low-level processing tasks to higher level, strategic activities. The finance department of the future will be a very different place.”
