From Routine to Strategy: How AI is Transforming the Future of Finance

_{This article was originally posted in German on Business Circle, October 2024.}
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AI in Finance: Transforming Operations Beyond Efficiency

As companies grow and requirements increase, managing financial complexities becomes a more and more a challenge. AI agents, designed to act autonomously, are stepping in. They can handle complex tasks like multi-country invoicing and regulatory compliance without human intervention. With AI piloted in 58% of finance functions in 2024, compared to 37% in 2023 (1), it’s clear that AI is here to stay.

As an example, one of Europe's largest construction companies introduced AI to process over 2 million invoices per year. Previously, errors were frequent due to manual data entry across 14 languages. Using AI, the company reduced mistakes, redefined employee roles, and unlocked new opportunities in order to further develop their skills. By shifting from manual data entry to data mastery, the company improved productivity and saved on costs.

Automation: more than just cost reduction

Automation in finance has evolved. Traditional systems like RPA and OCR were helpful but lacked scalability. AI changes that by autonomously understanding and processing data, improving over time. Automation can handle up to 95% of finance tasks, such as expense management and fraud detection, allowing teams to focus on strategic decisions.

AI tools enable employees to deliver higher-quality work. Contrary to fears of job loss, AI creates opportunities for employees to focus on more meaningful activities. In 2024, 66% of finance leaders felt more optimistic about AI's impact on their workforce than they did the year before (2). It’s about working smarter, not replacing humans.

EInvoicing: A Digital Transformation Opportunity

The upcoming 2025 eInvoicing mandate is pushing businesses to integrate AI. With AI agents capable of managing up to 60 different eInvoicing formats, finance teams can ensure compliance while minimizing errors. AI takes over the tedious work, allowing finance teams to focus on value-added tasks like forecasting.

eInvoicing not only ensures compliance but also enhances overall efficiency. Companies adopting AI for eInvoicing are positioned to gain a competitive advantage through streamlined operations.

AI and Humans: A Collaborative Future

The rise of AI doesn’t mean the fall of human workers. While AI excels at processing data, humans provide the context, intuition, and high-level decision-making skills that AI lacks. Managers must train their teams to work with AI, ensuring these tools improve over time.

One finance leader said, “AI provides statistics, but human oversight is essential to interpret results.” (3) In the case of the sustainable construction client, AI didn't replace employees; it upskilled them, reducing costs and improving performance.

Conclusion: AI as a Supportive Tool, Not a Replacement

AI is transforming finance by taking over routine tasks, allowing teams to focus on strategy. With new regulations like Invoicing on the horizon, businesses that embrace AI will thrive. The future of finance is a synergy between humans and AI, creating opportunities for innovation and success.

Sources:

(1)     The Current State of AI Use Within Finance. 23 August 2024. Published by Rajat Pandey, Marco Steecker. https://www.gartner.com/document-reader/document/5698419

(2)     The Current State of AI Use Within Finance. 23 August 2024. Published by Rajat Pandey, Marco Steecker. https://www.gartner.com/document-reader/document/5698419

(3)     AI At Work: Here’s What It Means For Employers And Employees. 21 August 2024. Published by Judith Magyar. SAP BrandVoice: AI At Work: Here’s What It Means For Employers And Employees

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