back Back

The future of accounting and finance is changing thanks to AI

By Puja Sharma

February 20, 2024

  • 365 finance
  • Accounting Platform
  • accounting solutions
Share

Generative AI, Artificial Intelligence, AI in Banking, FinTech, Europe, Natural Language Processing, Machine Learning, SaaSIMA (Institute of Management Accountants), the worldwide association of accountants and financial professionals in business, has released ‘The Impact of Artificial Intelligence on Accounting and Finance: A Global Perspective. The report outlines how to embrace a future with artificial intelligence (AI) along with the challenges organizations can face and prerequisites needed for a successful AI integration.

As AI continues to reshape the accounting and finance profession, IMA engaged global experts and leaders in the profession to study the applications of AI and what barriers could exist to implement processes into accountants’ daily work. Insights from these discussions are valuable for informing organizational strategies as leaders prepare to embark on their AI journey.

“AI is a game-changer that has the potential to empower accounting and finance professionals when it comes to data analysis, forecasting and decision-making,” said Susie Duong, senior director of research and thought leadership at IMA and author of the report. “The use of AI will drive the future of the profession’s growth, unlock untapped potential, and increase the value of professionals and organizations.”

The research for the report found that while AI will not fully replace human expertise, professionals at all levels will need to embrace and adopt this transformation and focus on technology proficiency, data analytics, critical thinking, and cross-functional collaboration. Likewise, organizations will need to foster human-machine collaboration, focusing on upskilling and reskilling team members, and creating a culture of ongoing learning to understand AI’s strengths and weaknesses, steering toward its responsible and fruitful implementation.

Study participants identified four aspects of challenges associated with AI implementation, which are human, technological, operational, and ethical. Challenges related to people – involving all levels of employees within an organization, were identified as the biggest hurdle for success of AI initiatives, according to 38% of participants.

According to a report by IBSi, A movement for responsible, ethical use of AI will begin with clear AI governance frameworks that respect human rights and values.

Adoption of AI is sitting at the intersection of innovation and trust. Yet, 76% of organizations don’t have comprehensive AI policies in place. There is mostly general agreement that we need regulations/policy and industry self-policing and governance to mitigate the risks from GenAI.

We must also ensure that consumers have access to and control over their data.With the rising importance of AI systems, available public data will soon hit a ceiling and high-quality language data will likely be exhausted before 2026. Organizations need to shift to private and/or synthetic data which opens the possibility for unintended access and usage.

“As AI revolutionizes the accounting and finance sectors in the Middle East, it announces the beginning of a new era of enhanced efficiency, strategic decision-making, and professional development. This shift significantly improves the work-life balance and elevates the Middle East’s position in the global economy. Embracing AI means embracing a future where learning, innovation, and ethical considerations are paramount. It’s about more than technological advancement, it’s about fostering a society that values continuous improvement, ethical practices, and inclusive growth,” said Ahmad Mkhallati, senior director, IMA Middle East, India, and Africa.

Previous Article

February 20, 2024

Alchemy Pay set to simplify NFT Purchase & Checkouts in SEA

Read More
Next Article

February 20, 2024

FinTech startup QuiD raises $603k in Pre-seed funding

Read More








IBSi Daily News Analysis

Generative AI

April 12, 2024

365 finance

Security experts sound the alarm on Deepfake threats in the age of AI

Read More

IBSi FinTech Journal

  • Most trusted FinTech journal since 1991
  • Digital monthly issue
  • 60+ pages of research, analysis, interviews, opinions, and rankings
  • Global coverage
Subscribe Now

Other Related News

April 15, 2024

Linedata acquires French AI startup DreamQuark

Read More

April 15, 2024

The Monday Roundup: what we are watching this week | April 15th

Read More

April 12, 2024

The Weekly Wrap: all you need to know by Friday COB | April 12th

Read More

Related Reports

Sales League Table Report 2023
Know More
Global Digital Banking Vendor & Landscape Report Q1 2024
Global Digital Banking Vendor & Landscape Report Q1 2024
Know More
Wealth Management & Private Banking Systems Report Q1 2024
Wealth Management & Private Banking Systems Report Q1 2024
Know More
IBSi Spectrum Report: Supply Chain Finance Platforms Q4 2023
Know More
Treasury & Capital Markets Systems Report Q4 2023
Know More

IBSi Sales League Table

The industry acknowledged barometer of global banking technology vendor performance!
Get your copy now!
close-link
Get your copy now! IBSi Sales League Table 2023