Evolution of Technology to Reshape Financial Businesses
Artificial Intelligence (AI) has become an integral part of most business sectors, among which is the finance department. In finance, AI is frequently used to automate invoice and payment processing. AI enhances HR departments and quality assurance departments in the business ecosystem with its ability to optimize the selection process efficiently and to anticipate, mitigate and prevent problems before they occur. Virtual assistants, chatbots, smartphones, and cars utilize AI regularly to identify users through biometrics and detect parking slots.
Currently, AI has entered the finance departments as with the potential to change how the financial team and other stakeholders interact with data. AI's primary objective in finance is to automate a tedious and repetitive payment process to automatic payment (AP) invoice process that enhances finance process efficiency.
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With the rise of AI, the AP workflow process is automated by software that analyzes, recognizes, directs, and exports data to the Enterprise Resource Planning (ERP) or financial system of a company and enables suppliers with full access to the big data in real time. AI in AP solutions has a significant positive impact on the finance department, which is currently leveraging the technology to create business models for enterprises catering to the small and medium-sized markets.
ML algorithms in finance enable solutions to manage documents with variable structure, such as invoices, resulting in the automatic recognition of data exhaustively and reliably, without prior configuration.
The use of AI in financial and accounting systems also leads to real profits such as a reduction in processing time from 45 days to 5 days, while being highly cost-effective. In addition, the percentage of discounts on invoice terms rose from 18 percent to 75 percent. The automatic invoice collection, coding, and storage resulted in an improved workflow that cut down on time required to accomplish a task, while also lowering the error rate.
The revolution of technology in financial departments has benefited employees in real-time strategies that aid in creative thinking, analysis, and decision-making.