Artificial intelligence (AI) has changed the business landscape and how people work. This cutting-edge technology is responsible for transforming company operations, improving decision-making, and creating more personalized customer service. Specifically, AI positively impacts the CFO’s work in several ways and can potentially boost the company’s return on investment (ROI). Continue reading to discover how CFOs can use AI to make a difference in their organizations.

5 Ways CFOs Use AI to Improve Business 

Some people are reluctant to entertain, much less embrace, the idea of integrating AI into their organization. It’s the adage, “If it isn’t broken, why fix it?” Fear of change is often at the base of this attitude. While it’s true that people like routine and resent change, AI is an effective tool that will improve many finance functions in a company. It isn’t a job-killer. Instead, it can reduce repetitive work for employees (and the CEO), allowing them to focus on more interesting and fulfilling functions. 

Once the CFO is on board, how can they use AI to change their organization positively? Here are some examples: 

1. Analyzing Data and Providing Insights

AI is superior to humans at processing and analyzing large amounts of data. The CFO and their team can use this technology to automate the company’s data collection and analysis. AI tools can generate forecasts and trends in real time.

Based on this information, the CFO can make decisions quickly and accurately. The company finance teams have the tools to provide management with crucial strategic planning and forecasting insights.

2. Automating Processes

AI-powered automation can significantly change the workflow in the company finance department. When CFOs introduce AI to their team members, manual workflow is reduced, and efficiency increases. Routine tasks can be handled by AI-powered robotic process automation quickly and accurately, reducing the risk of human errors.

Consider using AI in accounts receivable functions, such as sending automatic reminders to late-paying customers. AI can also predict what to do if the account remains unpaid based on “advanced payment behavior analysis.”

AI also reduces the risks of errors. When humans perform repetitive tasks, there is always the risk of making a typo or a calculation error. For example, an employee may need to remember to add an item purchased to an invoice, or sales tax, or a delivery charge may be missing from the document. An AI-generated invoice will include all items connected to the customer’s account and other fees.

3. Cash Flow Management and Forecasting

Artificial intelligence benefits CFOs by providing real-time cash flow insights and forecasts for the company. AI algorithms analyze the company’s previous cash flow data to identify trends. The AI software then predicts future trends and predicts possible liquidity gaps. 

CFOs can use this information to optimize the company’s working capital, manage debt, and make informed investment decisions. AI-powered forecasts help the CFO and their plan for company growth.

The finance department can prepare reports based on the AI-generated data, knowing the data is accurate and up to date. If the company needs to make changes quickly, it can do so based on the best information available.

4. Risk Management and Fraud Detection

CFOs can trust AI to protect the company’s reputation and guard its financial health. Machine learning algorithms examine historical data and flag anything out of the ordinary that could indicate non-compliance or fraud. The AI system can monitor all financial transactions and warn of suspicious activities.

5. Regulatory Reporting and Compliance

Company CFOs must ensure the company complies with complicated regulations and reporting requirements. AI automates the compliance reporting process by monitoring the company’s financial transactions, tracking regulatory changes, and ensuring the company remains compliant with the required reporting standards. 

AI allows finance teams to streamline their compliance activities. Manual errors are reduced, and regulatory reporting accuracy increases.

CFOs Can Trust AI During Post-Covid Business Climate

Artificial intelligence isn’t a wolf at the company’s door posing a threat to employees. It’s a valuable technology that offers several distinct advantages to the finance team and the CFO. Implementing AI allows the finance team to work on tasks requiring critical thinking, creativity, empathy, and flexibility—the human touch.

The plan for implementing artificial intelligence in a company should involve employees and management and include plans for upskilling workers so they can take advantage of new opportunities afforded by AI.

Let PositiveVision Assist You with Your Company's AI Goals

PositiveVision has been serving the needs of the business community in Chicago and the area for more than 30 years. Our product experts will be happy to help guide you through a high-tech transition at your company. Contact us today to speak to one of our product experts about a custom solution for your business. When you reach out, ask about our software training services for your team.

Linda Baran

Linda Baran is in charge of the people side of PositiveVision. Linda’s background includes working in a variety of industries including investment, manufacturing, and information technology.