A recent study by “SAP Concur” revealed a rise in the adoption of artificial intelligence technology in the financial services sector by CFOs, with the majority of them (82%) praising artificial intelligence for its ability to streamline business operations. 28% of them pointed out the significant efficiency of AI in producing high-quality financial data and analytics, while 24% highlighted AI’s capability to enhance the accuracy of financial forecasts.
Joao Carvalho, the CEO of South Europe, Middle East, and Africa at “SAP”, explained that the enthusiasm surrounding artificial intelligence has somewhat diminished due to concerns about its long-term impact on financial experts. Two-thirds of CFOs (68%) see AI as a potential threat to their positions, while 31% view it as a risk to their teams.
Carvalho stated that a change in mindset is needed promptly and that AI, if used properly and responsibly with data privacy in mind, can be a valuable tool in addressing financial challenges and can bring about a transformation in the role of financial leaders within organizations, equipping them with a competitive edge.
Carvalho noted that uncertainty is currently the greatest challenge facing CEOs, with nine out of ten financial leaders seeing their primary task as preparing for the unexpected.
Additionally, Carvalho explained that expectations remain a major obstacle due to the inability to predict markets, pricing risks, and outdated data. In this context, he said, “CFOs are turning to technology, with 57% enhancing market monitoring tools and 40% investing in innovation. More than half of them utilize data analytics, highlighting how artificial intelligence can provide a strong addition to this mix. CFOs can leverage AI to become technical guides capable of addressing the prevailing uncertainty challenge and offering valuable insights and ideas.”
Relieving teams from arduous tasks
Carvalho said, “Financial teams spend 40-70% of their time on data processing, and AI can revolutionize this area by automating tasks like invoice processing, allowing team members more time to engage in other strategic activities.”
He explained that AI, for example, can facilitate improving invoice matching accuracy and determining payment and collection strategies, enabling the organization to respond to threats and capitalize on new opportunities by securing risk assessment.
Regarding the impact of AI on data quality, Carvalho noted that AI helps reduce errors, enhances compliance levels, facilitates better invoice matching, and risk assessment. He stated, “This, in turn, reduces potential sources of uncertainty, as 47% of CFOs believe that AI significantly improves the tax function.”
He added that AI contributes proactively to improving data quality standards and stated, “AI can include necessary corrections, simplify processes, and save time, ultimately allowing financial teams to focus on other high-value activities, enhancing job satisfaction, and achieving better outcomes for organizations.”
Reimagining the role of CFOs
Carvalho said, “AI offers unique opportunities for CFOs, providing instant insights and information for forecasting and demand planning, as well as creating tailored financial plans. Thanks to AI-backed data, CFOs can…Making better decisions and guiding their institutions to be more prepared and proactive in their approach, as confirmed by the opinions of financial executives, where 61% of them considered artificial intelligence an essential element for managing uncertainty. Carvalho pointed out that artificial intelligence not only helps in compliance but also enables financial executives to benefit from operational data to provide comprehensive guidance in the business field. He said, “This may include assisting sales and marketing departments in implementing revenue-generating activities effectively, or enabling more research, development, and innovation.” Adding, “Artificial intelligence generally contributes to empowering financial managers to transcend traditional roles and become strategic partners, enhancing innovation in all establishments. This approach ensures providing all departments with accurate data to streamline their operations and ensure their ability to adapt to future requirements.” Ethical and proactive use of artificial intelligence Carvalho stressed, saying, “Despite the immense capabilities of artificial intelligence, we must consider data privacy issues, security, potential biases in artificial intelligence results, and also ‘hallucinations’ where incorrect conclusions of artificial intelligence are treated as established facts.” He added, “From this perspective, collaborating with a trusted partner experienced and understanding the importance of ethical practices in artificial intelligence is crucial. These partners can help set strong standards for cybersecurity and privacy, which are essential and critical requirements for using technology effectively.” Carvalho explained that integrated artificial intelligence tools in current systems can help financial leaders more easily leverage the value provided by technology. He said, “The close relationship between artificial intelligence and business operations can ensure the accuracy of predictions and AI-enhanced recommendations over time.” Concluding, Carvalho said, “Ultimately, artificial intelligence is not a substitute for financial services but enhances them, saving time required to perform complex tasks, and generating valuable ideas that support wise decision-making. Proper use of artificial intelligence can open new horizons for all departments of institutions even in challenging times.” You can explore the range of ideas and insights presented by financial executives of “SAI Concur” here.
