Having partnered with dozens of businesses, the team here at Dartcell has experienced the rise of AI first-hand. Although machine learning was originally something to be feared, AI-driven tools are no longer a nice-to-have – they are at the very foundation of most forward-thinking businesses that understand the value of today’s technology. In fact, recent research suggests that nearly two thirds of people in finance roles have adopted AI in some form.
There are unlimited uses for machine learning in the professional services space – but in our view, those within the finance industry are primarily using AI to:
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Automate routine tasks
Finance workers want to be able to focus on the work that will make the most of their skills and actually drive revenue – not the laborious jobs that eat into their time on an almost-daily basis.
AI enables us to avoid the grunt work and concentrate on strategy and delivery. Accounting software, for example, is something of a revelation. Accounting platforms like Xero and Intuit QuickBooks can automatically process invoices, match them with purchase orders, and handle payments, significantly reducing the time spent on manual data entry and the risk of errors. These kinds of tools can also categorise expenses, flag unusual transactions, and automate the approval process, making expense management faster and more accurate.
As you can imagine, when it’s implemented correctly, automation can have a profound impact on the effectiveness of finance professionals at every level, from bookkeepers and accountants to tax advisors and finance directors.
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Enhance forecasting
Predictive analytics can be used to assess historical financial data and external factors to generate accurate forecasts, helping finance professionals make better informed decisions about budgeting, cash flow management, and investment strategies.
The ability to report back on this data in real-time is a game-changer, too. AI-driven analytics platforms can provide real-time insights and reports, allowing finance teams to consistently monitor the key performance indicators (KPIs) and financial metrics that could affect a company’s success, and react to changes as necessary.
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Mitigate against risk
Security is a hot topic in the finance world, and for good reason. Financial service providers handle a large amount of sensitive data and money, making them an obvious target for cybercriminals who are out for their own gain. They have a moral and regulatory obligation to protect this information – but keeping up with security developments is a challenging and arduous task.
AI algorithms can identify patterns of fraudulent activities by analysing transaction data in real-time and flagging suspicious transactions, potential breaches, and even human errors for further investigation. This helps to reduce the risk of financial fraud and lower the instances of any costly mistakes.
And from a business perspective, AI can assess the creditworthiness of individuals or businesses by looking at large datasets, including non-traditional data sources, to provide more accurate and nuanced risk assessments.
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Deliver a better service
AI-powered chatbots can handle routine enquiries, provide basic account information, and assist with basic financial tasks much faster and more efficiently than humans. Available around the clock and able to adjust responses according to the conversation, live chat ‘assistants’ are fast becoming adopted by all kinds of businesses in the financial field, from banks to insurance companies.
What’s interesting about the shift into AI communications, however, is that while more than half of financial decision makers believe that AI has the most potential at the front-end of their business, just 15% of consumers would be comfortable taking advice from a bot. (These statistics are pulled from recent research from Europe, as outlined here.) So, while machines can attend to simple queries and might be an appropriate first-line point of contact, it will be some time before people learn to trust this kind of technology fully.
Bots aside, AI can also be used to analyse client data and provide real-time insights into trends, preferences and behaviours. All this information can be used to improve retention, reduce service errors, find opportunities for cross-selling or up-selling, and provide a more personalised level of care.
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Manage their time more efficiently
We’ve spoken about AI in the sense of traditional financial settings – but of course, professionals in all sectors are using automation to help them prioritise tasks and increase their overall productivity.
Here at Dartcell, for example, we are advocates of the Motion app, which uses AI to plan schedules based on tasks and priorities. It’s an excellent time blocking tool that:
- Finds the most appropriate slot in your day for the most important work, so you know what to focus on without carrying out a manual review of your workload
- Reschedules tasks that haven’t been completed, so you don’t need to find space for them yourself if your day hasn’t gone to plan
- Limits meetings, so you have enough hours to execute without any distractions
There are plenty of other task and time management apps available, all of which offer varying functionality at different price points. One thing is for certain: to better control their time and retain a competitive edge, financial professionals simply cannot afford NOT to be using AI in this regard.
Part of our role as outsourced finance directors is to identify the challenges within an organisation and find innovative ways to overcome them. In recent years, we’ve increasingly found that the answer lies in AI and its ability to streamline many aspects of our clients’ operations. For more information on how AI can benefit your business – in a financial sense and more broadly as a means of simplifying workloads, unifying teams and providing outstanding service – contact Dartcell today.