{"id":1422,"date":"2025-02-03T20:13:21","date_gmt":"2025-02-03T20:13:21","guid":{"rendered":"https:\/\/criticalconnexion.com\/?p=1422"},"modified":"2025-02-03T20:14:57","modified_gmt":"2025-02-03T20:14:57","slug":"ai-impact-on-finance-accounting-and-best-practices-for-managing-your-transition-to-ai","status":"publish","type":"post","link":"https:\/\/criticalconnexion.com\/ai-impact-on-finance-accounting-and-best-practices-for-managing-your-transition-to-ai\/","title":{"rendered":"AI impact on Finance & Accounting and Best Practices for managing your transition to AI"},"content":{"rendered":"\t\t
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AI impact on Finance & Accounting and Best Practices for Managing Your Transition to AI<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t
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What do you think of when you hear the term \u201cArtificial Intelligence,\u201d or AI? Do you think of robots taking over the world like the \u201cTerminator\u201d films? Hopefully the outlook of AI isn\u2019t that dire, but those in the finance and accounting industries are definitely questioning the changes and challenges AI may bring to our industry.<\/p>\n

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What does AI mean to finance and accounting careers? Are there security concerns through the implementation of AI? These are valid questions those within our industry have voiced to us.<\/p>\n

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The capabilities of AI are nearly endless and are restructuring our industry: from streamlining processes and reducing human-made errors, to ensuring regulatory compliance and giving us financial insights in real-time. How? That\u2019s what we want to discuss in our February blog.<\/p>\n

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AI\u2019s impact on finance and accounting can be an exciting venture, but there are best practices we will discuss here that will help you manage your own transition to AI. That way, you are using AI efficiently and accurately to better manage your financial processes. In addition, you will be better prepared to make the shift to AI and embrace this important change.<\/p>\n

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Today\u2019s Role of AI in the Finance and Accounting Industries<\/strong><\/p>\n

The implementation of AI has not overlooked the world of finance and accounting. In fact, a recent study <\/a> found that 7 out of 10 accountants believe AI will enhance their work rather than replace them entirely. Does that surprise you? It shouldn\u2019t \u2013 the projected market size for AI use in accounting is in the billions of dollars<\/em>.<\/p>\n

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At Critical Connexion, we learned early that we needed to help our clients proactively welcome the changes that come with AI. First, we found that three changes needed to occur so that an organization could successfully implement new technologies and ensure their finance experts had the skills to use them:<\/p>\n

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  1. The changes that come with AI needed to be incorporated into an organization\u2019s goals, and those at the top needed to provide executive support of these changes.<\/li>\n
  2. A focus needed to be placed on how to navigate any AI-related risks and ethical issues, including an understanding of the complexities of using AI in finance and accounting, data security issues, and the financial implications.<\/li>\n
  3. The existing workforce needed the proper training and development to learn these new skills to properly embrace the real-time data analyzed by AI.<\/li>\n<\/ol>\n


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    So, finance and accounting experts must first learn the skills of using AI with support from everyone at the top \u2013 the CEO, CFO, and any other executives who are leading your team. Once your finance experts have the support from the top, they can then embrace a strong understanding and awareness of the use of AI technology so that they can properly apply it to enhance all of your financial operations.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t

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    How to Apply AI in Finance and Accounting<\/strong><\/p>\n

    Although there are many benefits of using AI in finance and accounting, we will be discussing three best practices here: automation, real-time data and forecasting, and the optimization of compliance, security, and fraud detection.<\/p>\n

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    1. Automating data entry and routine tasks<\/u><\/li>\n<\/ol>\n

      One of the main benefits of using AI is the automation of many routine, tedious, and mundane tasks, such as data entry, invoice processing, reconciliations, and the categorization of transactions. This automation comes with four main benefits:<\/p>\n