Embracing AI in Finance: Insights from the Summer of AI Conversation Series

Thanks to the rise of artificial intelligence (AI), the finance and accounting landscape is undergoing a seismic shift. This transformation was the focal point of our recent panel, where industry experts from Vic.ai, Fairmarkit, and FloQast discussed the evolving role of AI in finance. 

The webinar, titled “Forecasting the Future: The Rise of the AI Accountant,” was hosted by Vic.ai’s SVP of Marketing, Mark Fischer, and featured CEO and Founder Kevin Frechette, Co-Founder and CEO of Fairmarkit, Stefan van Duyvendijk, Accounting Operations Evangelist at FloQast, and Alexander Hagerup, Co-Founder and CEO of Vic.ai.

Fairmarkit is an autonomous sourcing platform to help procurement teams do more with less, and FloQast is a close management and reconciliation platform. Both guest panelists have a specific passion for advancing the accounting and finance functions with AI-first technology.

The conversation explored how AI is set to revolutionize the role of accountants and the back office function, considered harnessing AI assistants, and discussed the transformative impact of AI on AP functions, team dynamics, operational strategies, and organizational growth.

Here’s a deep dive into the key takeaways from this first event in the Summer of AI conversation series:

The role of AI across finance and accounting functions is expanding

AI adoption in finance has been steadily increasing. According to a recent McKinsey survey, generative AI adoption has surged across corporate departments, with finance and accounting organizations lagging. This suggests a behavior shift that is only starting to take place.

However, those who are using AI today, are likely to use it across multiple functions. Frechette highlighted this trend, noting that "finance and accounting organizations are increasingly adopting AI in not just one area, but are at 50 percent adoption in multiple areas within the organization at this point, which is a dramatic increase from the year prior." This surge in adoption is driven by AI's promise to streamline operations and enhance strategic decision-making, as well as growing enthusiasm for the initial benefits seen using AI.

AI is shifting the accountant's focus from mundane tasks to strategic work

One of the most compelling aspects of AI in finance is its ability to automate routine tasks, allowing professionals to focus on more strategic activities. Frechette also pointed out that in the world of procurement, "AI allows you to maintain compliance, which then allows you to set your strategic direction moving forward." This shift from tactical to strategic work is crucial for organizations looking to stay competitive in a rapidly evolving market.

For invoice processing and bill pay, AI handles invoice ingestion, data extraction, PO matching, approvals, and payments, giving finance professionals the freedom to leave the mundane, time-consuming, and error-prone work behind to focus on more strategic work.

Even AI companies are taking note when looking at their own departments. Van Duyvendijk echoed this sentiment, stating that internally at FloQast, "we're trying to be very AI-forward as an organization. So we're kind of tasking every department to look at it. Look at ways to decrease the mundane routine work within each role." By automating repetitive tasks, AI frees up valuable time for finance professionals to engage in higher-level planning and analysis.

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Creating a culture of experimentation with AI

Another key theme discussed was the importance of fostering a culture of experimentation and innovation with AI, both across a broader organization as well as in the accounting and finance functions. Hagerup emphasized this by sharing how Vic.ai encourages internal team showcases and hackathons to explore AI applications that later turn into customer-facing features. 

"Creating a culture of playing around with AI tools, having hackathons, and internal showcases of just simple things that people have solved” drives innovation and ensures employees are comfortable and proficient with AI tools.

AI can mean different levels of autonomy

Interest in AI in finance is growing rapidly. Organizations are increasingly willing to invest in AI capabilities, recognizing their substantial benefits. Frechette noted that while there is significant interest in AI, "the first step is human-assisted AI. When they see the business outputs and outcomes, people are much more open to it."

This growing interest is not just about automation but also about leveraging AI for strategic decision-making. Hagerup mentioned that while the technological development of AI is advancing quickly, the adoption rate can be slower, particularly in mid-market and enterprise settings. "We're somewhat rate-limited by the adoption rate, but the possibilities for AI are vast."

The rise of the AI accountant is coming sooner than you think

The concept of an AI assistant or agent is coming to fruition for accounting and finance professionals. Imagine an ever-present financial expert who can process vast amounts of data in seconds, identify patterns and anomalies, and provide real-time insights into a company's financial health. Humans can collaborate with an AI accountant for data processing and analysis, monitoring compliance and risk, financial analysis and forecasting, and even interacting with clients to provide customer service or support through AI-powered chatbots or virtual assistants.

As companies continue to develop and explore the boundaries of technology to leverage AI, the future is limitless.

As an operational leader and evangelist for adopting new technology, Van Dijvendijk is particularly interested in how the AI models will work together. "When I look at the future of what AI can do, much of what we talked about today is just coupling predictive AI with generative AI. How do you get these models to adopt each other and work more seamlessly together for this newer generative AI deployment?"

Even though adoption rates of generative AI in finance are low, it’s possible that the combination of these AI technologies could pave the way for more comprehensive and tangible solutions for finance leaders to invest in. For example, pairing predictive AI software for data extraction, analysis, and processing with a generative AI-powered virtual AI accountant to provide real-time support and answers for a finance professional.

Looking forward

The insights from our recent webinar underscore the transformative potential of AI in finance. From automating routine tasks to enabling strategic decision-making and fostering a culture of innovation, AI is poised to revolutionize the finance function. 

As organizations continue to embrace and adopt AI, the future of finance looks promising, characterized by increased efficiency, strategic focus, and innovative practices. At Vic.ai, we are committed to staying at the forefront of this transformation, helping finance professionals harness the power of AI to drive their organizations forward.

Join us for the rest of the Summer of AI series - register here.

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