5 Notable AI Trends in Accounting and Finance

• Blockchain Council
• August 27, 2024

Artificial intelligence (AI) has led to a seismic shift in the world of finance and accounting. Accountants and finance professionals now have a better way of doing work, leading to greater insights, efficiency, and value opportunities. Here are the top five current artificial intelligence trends that are reshaping the new era of finance and accounting.

Automation of Repetitive Tasks 

AI has had an immediate impact on finance and accounting by automating time-consuming, routine tasks. You can rely on AI to complete such tasks with utmost accuracy and speed, from data entry to account reconciliations. This new shift is enabling accountants to direct more time and energy on complex, value-added activities. 

Most accounting and finance departments use robotic process automation (RPA) to perform repetitive tasks like document processing and analysis. Another option is Intelligent Automation (AI), which has the ability to mimic human interactions, study the meaning behind client communications, and understand historical data to adopt an activity. 

Big Data 

Data is the fuel that drives all other AI trends in transforming accounting and finance. Making sound business financial decisions calls for proper analysis of this data. In today’s world, data is more than just spreadsheets and numbers. It goes beyond to include semi-structured and unstructured data that require natural language processing and machine learning to analyze, enabling real-time status monitoring of all financial decisions. Thanks to the unprecedented global digitalization and widespread adoption of AI, firms can glean new and better insights from data to help the business draw more revenue and streamline internal operations. 

Intelligence of Things

The Intelligence of Things results from the combination of artificial intelligence with the Internet of Things  (IoT) and a system of integrated devices. This AI trend allows finance professionals to keep track of ledgers, financial records, and transactions in real-time. The support of artificial intelligence makes it easy to identify patterns and resolve issues quickly. It also leads to a stress-free and more streamlined continuous monitoring of accounting activities like audits. Besides, the Intelligence of Things leads to improved inventory management and tracking.   

Increased Computing Power 

Advances in artificial intelligence have led to an increase in the computing power of data that would be less powerful and useless with traditional computing mechanisms. The new changes enable finance and accounting departments to use and store data effectively. Right now, you can easily access and leverage scalable data analysis software and systems powered by cloud services from reputable providers like Google and Microsoft. 

Advancements have also been made in edge computing, which allows data computation to happen where the data is collected rather than in the cloud. The full adoption of quantum computing and 5G cellular network technology will mark the beginning of a smarter world. Quantum computers will help fix problems and offer services that traditional computers have been unable to, leading to increased value. 

Predictive Financial Insights

Thanks to AI’s predictive analytics, businesses have been able to forecast their future financial health accurately. AI analyzes the available historical data to predict cash flow situations, trends, and potential financial risks, enabling your business to have a glimpse into the future. Incorporating AI tools with predictive analytics into your business can help you offer clients and teammates forward-looking advice.

AI integration into accounting and finance processes is already happening. Accountants and businesses can seamlessly analyze vast amounts of data, automate routine tasks, and quickly detect anomalies and patterns. This reduces human errors, enhances productivity, and improves customer service. It is important to assess your business needs to identify the right AI trends and tools that align with your specific accounting needs.