AI and ML, a Gift or Curse to Finance, Accounting and FPA????

AI and ML a gift or curse to FP&A?

Currently artificial intelligence (AI) and machine learning (ML) are having a major impact on our personal, professional and business lives. With the introduction of phone assistants, data analytics and deep-thinking, AI and ML are gaining momentum. In terms of accounting and finance, are AI and ML a gift or curse to us? The answer largely depends on two key variables: business efficiency and insights.

What are business efficiency and insights?

Business efficiency is having defined, stable and scaled processes identified and measured. If you are high on this spectrum; then you have solid business processes, internal controls and measurable and scaled systems. Business insights is providing your team, business or industry with key actionable insights/findings to help guide short- and long-term strategic planning and operational excellence. If you are high on this spectrum, you are viewed as a vital business partner helping guide and predict the future.  These two elements matter because AI and ML can be used to accelerate; or have a multiplier effect on both variables.

What is the ideal balance?

The answer largely depends on resources, history and value perception of your accounting and finance team. Having high business efficiency is vital to implementing AI and ML tools and technologies. Why? When you have solid processes, internal controls and systems, you will be able to focus resources on gathering insights and knowledge. For instance, say your team has a solid collection or cash conversion process and you implement an AI technology that helps handle the tactical collection operations; those resources can now shift to providing business insights.

The goal of AI and ML is to shift your vital resources i.e. your people to high value activities which are; business insights, partnership and strategic planning.

Will AI and ML take my job?

I cannot tell you how many times during my public speaking engagements, conferences, webinars, or podcasts that accounting and finance professionals ask me this question. My answer has always been consistent, which is, “If you are asking will AI or ML replace my job then you probably realize what you are doing is tactical, routine and doesn’t drive business efficiency or insights. So, AL and ML will address those areas.” The real question smart and forward-thinking accounting and finance team should ask is, “How will AI and ML make my job easier so I can focus on producing higher business value & providing key insights?” AI and ML will continue to help and take away the data analysis, data mining, tactical and other routine business processes. My viewpoint on AI and ML is that it will incorporate the human element at the right moment to provide high business value; thereby revamping the skills/talents of future finance professionals.

How do I know if I’m ready for AI and ML?

1. Take a step back and put some deep thinking around where you, your team, business and industry fits on the business efficiency and insights spectrum.
2. Identify those business areas that have high business efficiency then explore what AI or ML tools or technologies can help multiply your impact and value.
3. Get business commitment and resources to invest in one or two of those technologies.
4. Measure, test, validate, learn, repeat.
5. Identify if these tools or technologies had an impact on increasing your business insights or help shift resources.
6. Continue to measure progress overtime then move back to step 1.

Lastly, please let me know your thoughts, i