AI Digital Transformation CFOs Look to Automation and knowledge Analytics for Digital Transformation, Survey Finds
AI Digital Transformation, Leaders of economic departments categorical enthusiasm for AI, ML, and different technologies however implementation faces some hurdles.
Optimism regarding the digital transformation of economic operations seems to be the prevailing angle among executives, in keeping with a brand new survey free by AppZen, a merchandiser of AI software package for finance. However, several command regrets regarding not transitioning sooner, and that they face potential roadblocks.
As with different departments, finance has been wedged by the pandemic. The AppZen survey report states: “A huge eighty-six p.c of survey respondents aforesaid they accelerated their digital transformation comes in 2020, and seventy-nine p.c aforesaid that the COVID-19 pandemic forced their organizations into those accelerations.”
Executives surveyed indicated they see the pandemic conditions as a chance to adopt new technologies together with advanced analytics, AI, machine learning (ML), blockchain, and robotic method automation (RPA), that Wikipedia defines as business method automation technology victimization software package robots (bots) or AI/digital employees.
Roadblocks to Adoption
Budgets might constrain such optimism. a few quarters of survey respondents expect their organizations can expertise negative growth in 2021. This cluster plans to focus additional “on price savings than long-run investment,” the report notes. Another potential roadblock to digital transformation is the lack of support from company leadership.
“According to the analysis,” the AppZen report explains, “the prime challenge for digital transformation comes is support from C-suite executives, like CEOs and chief data officers, as cited by twenty p.c of the respondents.” The report authors warn this can be an Associate in Nursing ominous situation: “The lack of support from the C-suite is especially worrying, given the massive variety of organizations that accelerated transformation efforts within the past year. If these come don’t ultimately have the support of the C-suite, area unit they destined to fail?”
Another downside visaged by CFOs is that the nature of the finance department’s daily work. not like sales and promoting — wherever analyzing knowledge to spot shopper shopping for and business getting trends fuels new technology adoption — accounting departments place a larger specialize in mundane tasks like process expense reports. These tasks can be rather more economical with the correct automation, however, the investment is not there however. viewing the responses from CFOs et al surveyed, the report notes: “The analysis showed seventy-two p.c aforesaid their finance team spends longer policing expense reports than analyzing expense trends and areas of improvement.”
Data consumption and extraction area unit prime candidates for automation, however, most finance departments haven’t taken full advantage of this. “Ingestion and extraction of key fields had solely twelve p.c of respondents achieving one hundred pc automation coverage during this space,” the AppZen report states. “AI-based invoice process and expense auditing were 2 areas of weakness for money automation that were exposed within the survey. solely forty-one p.c of the respondents presently automatize consumption and extraction of information from invoices, whereas forty-four p.c of organizations still take seven or additional days on the average to method Associate in the Nursing invoice.”
Regrets, that they had a couple of
Some survey respondents regret that they hadn’t affected by digital transformation, particularly advanced analytics before the pandemic forced changes on them.
“More surveyed executives needed that they had endowed additional in finance technologies over the last 5 years, versus investment less or not dynamical their allocations,” the report points out. Respondents had second thoughts regarding not moving sooner into all the technologies mentioned within the survey, together with AI, ML, blockchain, and bots. “Advanced analytics was the strongest regret,” the report authors note, “with sixty-seven p.c of the respondent’s spoken communication they might have endowed additional within the technology in savvy.”
Finance departments like accounts owed (AP) that don’t seem to be however applying machine learning to problems like fraud detection risk falling behind. “Machine learning in AP automation helps CFOs higher perceive merchandiser payment risks, forecast future defrayment will increase or decreases, and notice the applied mathematics likelihood of invoice anomalies and deceitful expenses,” the report authors make a case for. “Those CFOs that didn’t invest during this area unit realizing their mistake — with forty-two p.c of the respondent’s highlight AI and machine learning as a lost chance for investment.”
AP automation is one space wherever the survey indicates that CFOs area unit “stepping up to the plate currently.”
In Search of the school Savvy
Although finance departments might take pleasure in AI and cubic centimeter, they additionally want information employees World Health Organization to perceive however an idea like blockchain will be applied to accounting.
“CFOs progressively want tech-savvy finance groups capable of using analytics, as mirrored by thirty-four p.c of the survey respondents citing rising analytical skills as a prime priority for the year,” in keeping with the survey report. There was “near-unanimous support for reducing manual processes,” but “… but 1/2 the surveyed executives’ systems for expense audit and management were extremely automatic, [and there were] weaknesses in their AI-based invoice process and expense auditing.” it’d seem that enterprises want tech-savvy individuals to deal with these problems.
The survey, conducted by AppZen with business executive.com analysis, found enthusiasm for AI, ML, and different new technologies for knowledge processes and analytics in money departments. whether or not that interprets into digital transformation might rely upon however CFOs lead the charge.
As the report concludes: “Overall, even with the widespread support for investment in digital transformation among the CFOs, CEOs, and different senior finance executives within the survey, there gave the impression to be abundant space for improvement.”
This report is available at https://www.appzen.com/resources/whitepapers/cfo-survey-report-why-optimism-abounds/.