Organizations across the globe are in the advent of digital transformation. We’re starting to see new technologies being adopted that will change the way people work and the way we do business throughout the next few years.
In finance, the use of artificial intelligence and machine learning is taking center stage in automating tasks. Data from a McKinsey report shows that today’s new technologies can fully automate up to 42 percent of finance activities.
Artificial Intelligence & Machine Learning: Practical Applications in Finance
Artificial Intelligence and Machine learning software like Performance Canvas Financials are now being used for financial planning and analysis to deliver real-time data and customer insights, support better decision making for CFOs and promote better efficiency across enterprises.
Out of all business sectors, financial institutions have been the first to take advantage of these new technologies to improve the delivery of day-to-day services from automating payments, calculating risk, and improving the maintenance and upkeep of financial records.
Here are other applications of artificial intelligence and machine learning in finance.
Get More Streamlined Risk Assessment Procedures
Mapping risk for every individual customer can be a tedious process, one which entails tracking customer characteristics, industry, size, current financial landscape, and so on. Financial institutions rely on managers to make an accurate assessment, but while this could work to some extent, these decisions are limited by individual perspectives and subjective views.
But through machine learning, managers can map all existing data across all similarly implemented projects and make a comparative historical analysis that can go as far back as 40 years for better risk assessment.
Finance managers can better track the risk involved and make decisions accordingly for better long-term revenue and financial margins.
Improved Expense Claims Auditing
Artificial intelligence can make use of automation to enhance expense claim auditing. While finance organizations need to track genuine receipts to match the amounts being claimed, this can be simplified through the use of finance solutions like Performance Canvas that is AI-powered for a seamless claims process.
Not only can this lead to better accuracy and avoid simple errors, but AI-powered software solutions can also read receipts in all various languages, ensure these are genuine while having the added functionality of matching this to company policy.
Leverage Seamless Invoice Payment Clearing
Many financial organizations often struggle with clearing invoice payments. They may have to deal with missing invoice numbers, incorrect payments, problems with customers combining invoices in one payment, or other data entry errors and inaccuracies.
But a software solution powered by artificial intelligence and machine learning can automate the clearing of all kinds of payments, generate invoices, and even suggest invoices that match paid amounts to ensure data and invoice tracking always remain accurate.
Better Financial Planning through the Use of Detailed Analytics
Financial analytics remains a tricky problem area where financial planning analysts find themselves needing to deal with questions on revenue forecasts monthly, quarterly, or annually and having to track growth for different kinds of businesses.
Advanced financial software solutions are equipped with more accurate forecast features, stock quotes, and provide the latest economic figures to give CFOs and other top decision-makers the data they need to drive better business outcomes.
Finance teams can customize these reports and gather data in real-time or backtrack years before. These software solutions can send detailed reports on demand.
Performance Canvas Financials: Powered by AI and Machine Learning
Performance Canvas is a robust financial planning and analysis software that offers automated forecasting and reporting functionalities in one. CFOs and business analysts can make the most of this cloud-based and unified platform to tailor their FP&A process in a way that meets their financial reporting and forecasting needs.
If you’re looking to streamline and automate your organization’s financial budgeting and reporting needs, Performance Canvas has a consolidated list of useful features that you can leverage for accurate data tracking.
It is a powerful financial tool that you can help you achieve your company’s long-term financial goals while having the flexibility to drive innovation through intelligent process automation.