The Role of AI and Automation in Finance and Accounting

Did you know that 64% of businesses expect their production to increase because of artificial intelligence (AI)? However, beyond boosting productivity, 25% of companies are using AI and automation to address labor shortages.

But what about finance and accounting, where you deal with sensitive and crucial data? How does AI implementation affect this area?

In this article, we'll explore the impact of AI and automation on finance and accounting. We'll discuss how these technologies can benefit your company, providing a better alternative to traditional finance and accounting outsourcing companies.

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Benefits of AI and Automation in Finance and Accounting

It’s not just a trend! When used correctly, AI and automation can speed up your finance and accounting processes. It can:
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Transform your operations

The average employee spends at least 19 days on recurring, repetitive tasks yearly. 

Integrating AI and automation allows you to free up those days and use AI to handle routine activities. This transforms your processes efficiently, allowing your team to focus on more strategic, value-added tasks, such as:
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• Risk management
• Real-time calculations
• Anomalous spending behavior detection
• Compliance maintenance
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Achieve precision

Errors in finance and accounting can be costly. The most common accounting errors are:
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• Data Entry Errors: These are mistakes like transposed numbers or typos, leading to significant discrepancies.
• Incorrect Actions: Examples of these are processing transactions with wrong data, resulting in financial inaccuracies.
• Errors of Omission: These leave out essential data, causing incomplete records and reports.
• Errors of Principle: This is applying the wrong accounting treatment, distorting financial statements, and misleading decision-making.
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With AI, you can create a more precise accounting process. This implementation benefits your team, as AI algorithms can help analyze vast amounts of data faster and more accurately.
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Reduced costs

AI and automation have a very compelling benefit—cost reduction. 

Automating routine tasks reduces the need for extra hands, significantly reducing operational costs. AI can do the heavy lifting, allowing you to optimize your workforce and allocate your human resources to tasks that add the most value.

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What are the Challenges and Considerations?
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While AI and automation offer remarkable business benefits, they come with their own set of challenges and considerations.
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Navigating system glitches and downtime

While AI and automation bring improvement and efficiencies to your business operations, it doesn’t necessarily guarantee perfection.

Glitches and downtime can still happen, disrupting business operations and leading to delays and even loss. 

A robust contingency plan and regular maintenance can mitigate these issues. Working with reliable vendors and updating your systems is essential to minimize the risk of unexpected downtime.
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Managing sophisticated AI systems

AI systems can be complex and require specialized knowledge to manage effectively, which leads to the need for specialized talent. 
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You may still need to hire an AI Specialist with AI and machine learning expertise to ensure your systems run smoothly.
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Addressing privacy and security risks

Your finance and accounting department handles sensitive data, making it a potential cyberattack target. In fact, the International Monetary Fund (IMF) recently released a report stating that cyberattacks are increasing in frequency and sophistication.

Considering this, having the right team to ensure robust security measures while implementing AI and automation is critical. 
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Avoiding dependence on automated decision

According to the McKinsey Global Institute, half of our work tasks could be automated with today's technology. However, only about 10% of jobs could see more than 90% of their tasks automated.

This shows that AI has limitations. It can enhance decision-making and operational efficiency, but having experienced professionals is critical to managing AI.
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Initial investment and ongoing maintenance costs

Beyond the initial setup, you also have to consider the ongoing maintenance costs of AI integration and automation.

More than that, the cost of AI and automation can depend on a variety of factors, like:
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• Scope of implementation: The extent and scale of the AI project.
• Required specialists: The expertise needed to develop and maintain the system.
• Type of AI solution: Whether it’s a simple automation tool or customized to your needs.
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AI can be both generative and tailored to your business operations, offering tremendous benefits. However, it’s important to remember that it can also cost more than you anticipated.
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Balancing automation with human employment

Automation has led to concerns about job displacement. In fact, 77% of employees worry it might cost them their jobs, but that’s not true.

At this point, striking a balance between AI and your business's employees is crucial. Experts best leverage AI, enhancing their capabilities rather than replacing them. Combining human expertise with AI can create a more efficient, innovative, and dynamic work environment.

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How Remote Staffing Enhances AI and Automation

Combining AI and remote staffing solutions can significantly enhance your operations, taking them to new heights.

How?

Imagine integrating remote staff with AI tools. These talented individuals can work seamlessly with AI to streamline tasks and processes.

With cost-effective AI software, remote employees can automate routine tasks, manage workflows, and analyze data more efficiently. This leads to smoother operations, increased productivity, and lower labor costs.
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For example, hiring a remote Filipino AI specialist can save you over $100,000 compared to hiring locally in the US. The best part? Your remote talent can access AI tools from anywhere, ensuring continuous productivity and collaboration, regardless of location or time zone. This flexibility allows your business to scale effortlessly, adapting to changing demands without missing a beat.
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To top it all off, as your business grows, you can quickly scale your remote team to meet increased demand without the constraints of physical office space. Plus, the flexibility of remote staffing lets you tap into a global talent pool, hiring the best experts you need for your business.

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Reach Peak Performance with Remote Finance and Accounting Experts

Ready to find the expertise you need to elevate your finance and accounting operations?

At MultiplyMii, we specialize in connecting businesses with top Filipino talent through our tried-and-tested recruitment process.

For a decade, we have been sourcing and vetting Filipino candidates who fit your business needs, allowing you to step away from the nitty-gritty of recruitment and focus on what truly matters.

Think this is what you need? Connect with us to discuss your hiring needs and we’ll give you a free, no-obligation consultation!

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