ACCM506 – FINANCIAL REPORTING, STATEMENTS AND ANALYSIS – I

Finance and Accounting Transformation by

Artificial Intelligence (AI)
ACCM506 – FINANCIAL REPORTING, STATEMENTS AND ANALYSIS – I

LECTURE OUTCOMES
 To acknowledge the relevance of artificial intelligence in Accounting and
Finance.
 To appraise the ways in which AI can streamline Accounting and Finance
activities.
ACCM506 – FINANCIAL REPORTING, STATEMENTS AND ANALYSIS – I

If you could reduce costs by 80 percent and the time it

takes to perform tasks by 80 or 90 percent, would you
be interested? 
ACCM506 – FINANCIAL REPORTING, STATEMENTS AND ANALYSIS – I

 According to a study by the IMA, one-third of accounting firms are spending anywhere
from 51 percent to 75 percent of their time on repetitive, low-value tasks.
 Additionally, 56 percent of the surveyed accounting professionals said they require
automation just to keep up with their growing workloads.
 Adopting AI and ML platforms will streamline the accounting processes and also help
the professionals to speed up the work.
 For example, use of Robotic Process Automation (RPA) to decrease the processing
times for audits and contracts down to weeks, where it takes usually months.
 According to Forbes, major firms that adopt RPA AI integration have ‘high efficiency
and higher-level services’, when compared with smaller, non-AI competitors.
ACCM506 – FINANCIAL REPORTING, STATEMENTS AND ANALYSIS – I
ACCM506 – FINANCIAL REPORTING, STATEMENTS AND ANALYSIS – I

AI will boost productivity and output quality even as it results in greater

transparency and auditability.

AI will provide a broad range of opportunities and minimizes the

traditional time-consuming responsibilities of the finance team to look at
more venues for business growth.

AI helps in forecasting accurate financial statements. With machine

learning (ML), finance professionals can predict future trends based on
historical data/records.
ACCM506 – FINANCIAL REPORTING, STATEMENTS AND ANALYSIS – I
ACCM506 – FINANCIAL REPORTING, STATEMENTS AND ANALYSIS – I

Places where AI and machine learning impacts

accounting
ACCM506 – FINANCIAL REPORTING, STATEMENTS AND ANALYSIS – I

Accounting Automation
ACCM506 – FINANCIAL REPORTING, STATEMENTS AND ANALYSIS – I

Transaction Coding
ACCM506 – FINANCIAL REPORTING, STATEMENTS AND ANALYSIS – I

Auditing
ACCM506 – FINANCIAL REPORTING, STATEMENTS AND ANALYSIS – I

Accounts Payable
ACCM506 – FINANCIAL REPORTING, STATEMENTS AND ANALYSIS – I

Clerical Accounting Tasks

ACCM506 – FINANCIAL REPORTING, STATEMENTS AND ANALYSIS – I

Invoice Fetching
ACCM506 – FINANCIAL REPORTING, STATEMENTS AND ANALYSIS – I
ACCM506 – FINANCIAL REPORTING, STATEMENTS AND ANALYSIS – I
ACCM506 – FINANCIAL REPORTING, STATEMENTS AND ANALYSIS – I

How to Leverage AI in Accounting and

Finance
Payables/Receivables Processing

Supplier Onboarding

Procurement Processes

Auditability

Monthly and Quarterly Cash Flows

Expenses Management

Chatbot Support
ACCM506 – FINANCIAL REPORTING, STATEMENTS AND ANALYSIS – I

Benefits of AI in Accounting and

Finance
Convenience for
It also adds significant value that goes beyond convenience.
accountants

Efficiency to the This spares the accountant from having to conduct activities such as gathering
accountant role data for audits or analyzing organizational expenses.

These actions tend to take up a lot of time and energy, which could take time
away from other important duties like strategic financial development and
maintaining regulatory compliance.
ACCM506 – FINANCIAL REPORTING, STATEMENTS AND ANALYSIS – I

Cont’d…
Increase accuracy This can further streamline the accounting process, as minimizing mistakes
and reduce human naturally translates into less time having to discover, track down and correct
error errors.
From a big-picture standpoint, this can also potentially make a business less
subject to large-scale accounting issues like missed payments or tax penalties.

Reduce the risk of Because artificial intelligence can audit every document related to finance, it can
fraud detect irregularities and alert accountants to their presence.

While this can stop small, honest mistakes from transforming into much larger
issues, it can also bring attention to large-scale suspicious behavior in a 
ACCM506 – FINANCIAL REPORTING, STATEMENTS AND ANALYSIS – I

Changing the Human Mindset

According to a study from The Boston Consulting Group and MIT Sloan School
of Management, nearly 85 percent of executives understand that AI will help
their companies attain or sustain a competitive advantage.

What are the barriers to

artificial intelligence
adoption in
accounting?
ACCM506 – FINANCIAL REPORTING, STATEMENTS AND ANALYSIS – I