Today is the Era of AI and Data
Potentially the most significant shift that we’ve seen over the past decade in the world of technology has been the incredible advancements we’ve seen in big data and artificial intelligence. Research from SEMrush shows that the global AI market is expected to continue its rapid acceleration and reach a global value of $190bn by the year 2025.
37% of companies are currently utilizing AI within their organizations and that number is growing fast. Those companies that are able to leverage the power of this technology to drive their organizations forward are the ones who will be able to adjust and adapt to our fast-changing business environment. Those who don’t will find themselves left out, on the wrong side of history.
AI Can Be Seen as a Financial Data Analyst For Your Company
Some of the lowest hanging fruit when it comes to integrating AI relates to your financial analysis. At present, you’re likely doing a range of different financial analyses manually, manipulating data, and measuring well-understood metrics and relationships to get a better grasp of how your organization is performing.
But what if you could use AI to supercharge these efforts?
The beauty of artificial intelligence is that it can process huge data sets and arrive at new insights that you might never have reached otherwise. By leveraging highly advanced machine learning algorithms, you can automate a lot of your financial analysis – giving you more precise and valuable information about the health and future prospects of your business.
How Your CFO Can Use Artificial Intelligence
To get more practical, let’s run through some of the more useful applications for AI within your finance function.
Gaining Customer Data and Predictive Pricing
The art of pricing is to manage your supply and demand effectively to find a sweet spot where it is a win-win for both your customers and for you. Ideally, you’ll want a price that captures the majority of your demand while still remaining at a healthy level of profitability. AI can assist with this by gathering and analyzing your customer data on several different levels – to assist with specific pricing strategies that are in line with the reality of what’s happening.
AI can assess peaks and troughs throughout your customer journey and purchasing cycle, suggesting small tweaks and optimizations to your pricing that can make the world of difference.
Forecasting Spending
When it comes to forward planning, the most crucial aspect is to understand your expenses and how they will play out in the months and years to come. If you don’t have a good grasp on this, you can very easily run into cash flow problems down the line because of the decisions you’ve made today.
AI can help you avoid these by creating highly precise and accurate forecasting of future expenses that go beyond mere budgeting. By analyzing your past financial data and the projections of future activity, AI can fine-tune these projections and help you arrive at a more holistic and reliable estimate of what you’ll likely be spending in the future. You can then make better business decisions on the back of that.
Detection of Embezzlement or Expense Fraud
Unfortunately, embezzlement and expense fraud are both things that you’ll have to deal with as an organization – and they are notoriously difficult to identify. Luckily, AI can help you find evidence of these crimes because of its ability to monitor behavior in your financial systems and look for suspicious activity.
Once the AI system alerts you to potential fraud, you can investigate and take whatever action is needed. It’s just like having your own private investigator on the job 24/7.
Automate Manual Processes in the Finance Function
The CFO and their team will likely have a number of routine, mundane processes that they must run on a regular basis as part of an efficient finance function. These routines can be tedious and leave room for human error because most people don’t actually enjoy doing them.
AI can step in and automate these processes, taking them off your plate as a finance team and delivering more efficient and accurate outcomes at the same time. This frees up time and resources to work on higher-value tasks that can take your company to the next level.
Use AI to Analyze Your Company’s Expense Management
As you can see, there are a number of highly valuable ways that AI can transform the way you manage your company finances. One of these is in expense management and that’s where Jenji comes in. We’ve built an intuitive and easy-to-use expense management platform that leverages the best of AI to make your job as easy as possible.
Instead of spending hours and hours every week reconciling, logging, and analyzing expenses – our software can do all that for you. Within no time, you’ll realize that our paperless, AI-based solution can remove those headaches and allow you to spend more time working on the things that truly matter and less on chasing up expense reports and analysis.If you’re interested, be sure to check out Jenji today or get in touch so we can explore how we might be able to help your organization.
