The ever-expanding potential of AI is already proving its worth to corporate Canada
Given AI’s ability to handle repetitive tasks and analyze large amounts of data at super speeds, it’s not surprising that the technology is gaining favour in accounting and financial reporting. KPMG’s report said most AI leaders are also using the technology in financial planning, treasury management, tax operations, risk management and cybersecurity.
“It’s really turning finance upside down,” Chris Moore, a partner at KPMG Canada who leads the Finance Transformation practice, said.
Rather than spending time on number crunching and reconciliation, finance professionals can put their skillsets to better use and do predictive analysis and take on a “finance business partner role,” he said.
But even with growing excitement around AI’s potential in finance and the strong usage cases proving its effectiveness in driving efficiencies, Moore said organizations need to create the infrastructure necessary to maintain and evolve AI models as businesses grow. He points out that earlier iterations of generative AI with robotic process automation (such as bots used to automate repetitive tasks) didn’t quite take off as expected.
“That stalled a bit because a lot of the skills to enhance and maintain those tools weren’t built within the organization,” he said.
As AI tools are leveraged more and more in the financial space, having the right protocols and governance mechanisms in place to protect sensitive company and customer data will be paramount, too.
“We’ve been talking to our clients about trusted AI … because that’s going to be really important to not just employees, but to an organization’s stakeholders,” Moore said.
Beyond accounting and financial reporting, corporations should also be harnessing the power of AI to create real value for their businesses, said Moore’s colleague, Aris Kossoras, a partner in banking at KPMG Canada.
“If we overconcentrate on the application of AI to augment efficiency in the finance department, we’re missing the boat,” he said.
Even if you think (AI) is overhyped, do not underestimate it
Aris Kossoras
Instead, value creation that will increase a business’ top line, improve the balance sheet and grow client profitability will have a much bigger impact.
“Even if you think (AI) is overhyped, do not underestimate it, especially in the long term,” Kossoras said.
To that end, he said organizations need to be thinking about how to create those “skillsets of the future” within their finance function now because employees don’t always have the data literacy or digital acumen to be able to productively engage with AI models.
In looking at some of the most successful organizations Kossoras has worked with in global banking, he said there is no “silver bullet” when it comes to changing the skillsets in finance to optimize AI.
In addition to reskilling existing staff, he said there could be a benefit in “borrowing employees” from other departments who may be closer to the front office and other risk functions and have a higher level of “data DNA.”
For those who don’t want to risk being left behind, it is beneficial to become more familiar with AI now to figure out how to use it to your advantage, said David Trahair, a chartered professional accountant and best-selling author who operates his own personal finance training and e-learning content firm and does on-demand seminars for chartered professional accountants across Canada.
“The best thing they can possibly do is embrace it … and be interested in (the new platforms) coming out,” he said. “Those employees who aren’t into it are the ones at risk, whether it’s in accounting or any other area because (AI) makes so many things more efficient and even creative.”
“Then I’ll say, ‘Please summarize this into key bullet points so I can post it in a note,’” he said. “It’s incredibly creative and thoughtful and listens to you.”
Technology this intuitive is also changing “mind-blowingly fast,” Trahair cautioned, so training has to be constant and always current.