The future of finance with technology: What role do AI and RPA play?

More and more finance departments are embracing the deployment of new technologies. But before we delve deeper into which technologies they mostly choose to deploy, let’s look at the benefits of digital transformation to organisations. In the Netherlands, many companies are prioritising process automation, and the finance department is no exception. This technology is particularly chosen for:

In addition, organisations are deploying technology to become more data-driven. After all, data is more available than ever, giving organisations access to an unprecedented volume of insights. However, just deploying the right technology is not enough. This technology must be organised and used correctly, and that is what some organisations are currently lacking: Only 15 percent operate fully data-driven, according to our research. Despite this, a large group (62%) says data already supports their current processes, but almost a quarter of organisations (22%) admit they are not using data optimally yet. There could be several reasons for this. For example, 38% of finance professionals state that data in their organisation has to come from different internal and external sources, which makes combining this data difficult. Moreover, the same percentage indicates that they do not have the necessary technology to make data optimally available. For another 32 percent, lack of internal knowledge is an obstacle to becoming data-driven. The good news? Despite these challenges, organisations aren’t losing sight of how crucial data is. On the contrary, they are striving to become more data-driven, as it offers them valuable benefits:

Several (technology) trends are expected to have the biggest impact on financial processes. Not unexpectedly, AI is the (broad) frontrunner in this, but certainly not the only technology being deployed:

Let’s zoom in a little further on two of these technologies: AI and RPA. One is already established in many companies, and the other is still mainly a promising technology. In any case, both technologies are crucial for a reducing the error proneness of financial processes and b) simplifying money flow between different parties. In addition, deploying these technologies affects finance professionals’ job satisfaction: half of the respondents (53%) find their work more enjoyable when there is a higher degree of automation. This makes no surprise, as automation reduces manual tasks, leaving free time for more substantive and challenging work. But when do companies choose to deploy AI? When do they choose RPA? RPA is a technology that automates routine tasks only. These are repetitive and rule-based tasks, such as invoice processing or data entry. On the other hand, AI is self-learning and can therefore take over “thoughtful” tasks, such as performing complex analysis, recognising trends, making predictions and assessing risks. Not surprisingly, more than half of the respondents expect AI to significantly affect the finance process (51%). This figure is lower for RPA (22%). However, in several cases, finance professionals would like to deploy AI but are lacking the willingness within the organisation. For instance, 48 percent would like to work more with AI, but their employer does not allow it, our research suggests. For 57 percent, this is blocked by the IT department, while for 53 percent there is no support for using AI within their team.

However, the deployment of AI is not without concerns. For instance, 52 percent of finance professionals fear that by deploying AI, they will lose control over financial processes. Forty percent also fear that AI will make their jobs redundant. Interestingly, these worries are especially present among younger professionals: 54 percent of finance professionals under the age of 35 fear losing their jobs to AI, while only 28 percent of professionals over 55 worry about it. Those worries, however, are unnecessary: AI is meant to support, not replace.

AI will therefore not disappear from our working lives. But working with AI will require new skills. The top five skills that finance professionals expect to need in the future are: Skills for effective deployment of AI, Analytical ability, Adaptability, Communication skills, Leadership skills. These skills will help employees not only work more efficiently, but also move with changing market demands. Organisations play a key role here: with training courses and internal programmes, they can help employees develop new skills. This would not only boost confidence in this new technology but would also enable them to apply it more efficiently.

The future of finance is being shaped by technologies such as AI and RPA. Haven’t invested in these yet? Now is the time to get started. With the right investments in technology and knowledge, organisations can make their financial processes more efficient, faster and clearer than ever before.