Integrating AI Solutions in Finance

There’s no doubt that AI is here – and it’s bringing big changes to the industry. But is everybody ready to embrace it? In our research study AI’s Role in Business Risk, we found that 22% of surveyed finance managers believe that incorporating AI into their role would add to their already heavy workloads. Not exactly glowing praise, right? But is that really the case?  

AI in finance myth 1: AI will replace human jobs

Ah, the classic fear of the robot takeover! While it's true that some tasks will be automated, AI is here to supplement human intelligence—not replace it. Think of AI as your trusty sidekick, helping financial professionals make faster, smarter decisions while freeing them up for more complex problem-solving.

AI in finance myth 2: AI is only for big corporations

Surprise! AI isn’t just for the Fortune 500 folks. Advancements in technology have made AI solutions scalable and affordable for businesses of all shapes and sizes. Whether you're a startup or an established enterprise, there’s likely an AI tool out there designed with you in mind.

AI in finance myth 3: AI can’t be trusted

Sure, we aren’t going to tell you to immediately put your company’s entire financial future in the hands of AI. And it’s important to screen your AI tools for biases or other issues that could make them less accurate. But when you use the power of AI alongside that good old-fashioned human brain, it can supercharge your business in a big way. 

AI in finance myth 4: all AI tools are created equal

Just like you wouldn’t hire a cat to guard a fish tank, not every AI solution fits all financial needs. Research and choose tools that align with your business. Think about your goals: does your finance team need help streamlining their processes? Then maybe an automated decisioning software could be the answer. Are your existing customers causing you trouble? Maybe you could catch more problems with automated monitoring.  

Picture this: It's Monday morning and your inbox is already overflowing. Instead of being able to organize your time and thoughts in the way that would make you most productive, you have to try and dig yourself out from under the mountain of credit applications. Wouldn’t it be a bit better if you could let someone else take the wheel?

Automated credit decisioning software uses your company’s credit policy to make fast decisions on whether to extend credit to a new customer. A good software will be fully customizable, letting you screen for things like credit score, payment habits, any legal filings against the company, compliance violations and anything else you need to know.

Now, don’t get too nervous about that robot takeover: we know that, great as it is, AI won’t be able to handle every single credit decision you have to make. Our research found that 46% of finance managers said between 50%-99% of their weekly credit decisions require in-depth analysis, after all. But the gift of automation in finance is time. Now, instead of worrying yourself over each and every financial decision, you can let AI quickly weed out the obvious yesses and nos. Suddenly, you have more free time to dedicate to those more in-depth cases.  

With ever-evolving regulations and requirements, keeping up with business compliance can feel like a Herculean task for even the most seasoned experts. And if you can’t? The legal fees, fines and expenses you might run into with replacing suppliers add up quickly. But you’ve probably already guessed the twist ending here: AI can help you keep up with compliance, too. 

Automated compliance alerts analyze regulatory changes and flag potential compliance issues in real-time. If a new financial regulation goes into effect or your client fails to meet certain standards, you’ll know right away. You can forget about that feeling of panic when a regulation changes or it’s audit time: automated compliance alerts means you’re up to date without having to constantly scan news feeds.

And it’s not just about avoiding fines – though we definitely want to make sure that you do that, too – it's also about the reputational damage your business could face. In the age of cancel culture, it’s about putting your money where your mouth is. Our research study Economics of Holiday Sales found that 52% of respondents said they’d immediately cancel contracts and payments to suppliers who were found to have used child or forced labor. But 53% admitted that they don’t run compliance checks to minimize that risk. It doesn’t exactly add up, does it?  

Running regular compliance checks goes a long way in mitigating the risk of your company working with non-compliant suppliers. But businesses are busy -- and with so many moving parts, it's easy to see how those regular checks can get a little less regular. That's where automated compliance alerts can be a game changer. If any one of your monitored companies is in violation of a compliance regulation, you can act right away; before those violations can reflect poorly on your business.