Guide to AI in Accounting: Trends, Tools, and Stats

Introduction: The Era of AI in Accounting

Welcome, Artificial Intelligence (AI) is not just the stuff of sci-fi movies but a real, practical tool changing how businesses handle their finances. If you’ve ever daydreamed about having a robot to do your tedious tasks while you focus on the big-picture stuff, AI might just be the answer. This guide will walk you through how AI is reshaping the accounting industry and save you from drowning in spreadsheets.

What is AI’s Role in Accounting?

AI is like that super-efficient coworker who never takes a coffee break but will occasionally make an intuitive misalignment (see later). At its heart, AI is helping businesses do more with less—less time, less effort, and less stress. Instead of spending hours manually entering data or reconciling accounts (we’ve all been there, right?), AI can handle these tasks in a fraction of the time, with zero complaints and no need for caffeine.

With AI, businesses can automate routine accounting processes like data entry, invoice processing, and financial reconciliation. Imagine your accounting team being able to process mountains of data at lightning speed, without anyone needing a day off afterward. That’s the power of AI. And no, AI won’t take your job but it will make it a whole lot bigger. Expect your productivity to go through the roof.

In fact, according to recent studies, 71% of accounting professionals believe AI is going to shake things up in the best way possible. And with 80% of CFOs planning to spend more on AI in the next couple of years (source Chat GPT), it’s clear that this technology is here to stay.

Will AI Replace Accountants?

The short answer: almost certainly not. The long answer: AI is here to support you. Think of AI as the Robin to your Batman. Sure, Robin can handle a lot on his own, but when it comes to the big, complex decisions, Batman’s still the one in charge. AI can take care of the routine stuff, but it doesn’t have the creativity, judgment, or that special accountant’s touch that you bring to the table.

Accountants are still the go-to experts for understanding complex business transactions, interpreting data, and advising clients. AI might be great at crunching numbers, but it doesn’t know how to build relationships or offer personalised advice. So, while AI will handle the heavy lifting, you’ll still be there making the big decisions and guiding your clients or business through the financial labyrinth.

AI might actually make your job better. By taking over the mundane tasks, it frees you up to focus on the more interesting and strategic parts of accounting. So, no need to worry about AI taking over the world yet (or your job); it’s here to make your work life better, not replace people.

AI Trends in Accounting for 2024

During my down time between contracts I’ve taken a look at the market, here’s what I found.

Trend #1: AI for Data Summarization, Organization, and Analysis

One of the hottest trends in accounting is using AI to turn that mountain of data into a neatly organized molehill. Remember when working with raw data felt like trying to find a needle in a haystack? AI is the magnet that pulls the needle out for you, saving you the headache and maybe a few grey hairs. Tools like ChatGPT are now being used to extract structured data from unstructured sources.

For industries that swim in data, like finance, retail, and manufacturing, AI’s ability to analyse and summarise information quickly is a game-changer, faster, and way more efficient.

Trend #2: AI-Driven Predictive Analytics

AI-driven predictive analytics analyses past data and forecast what’s coming next and providing objective evidence without you having to dive into calculus. So helping businesses make smarter decisions. Instead of just reacting to financial events, you can be the savvy strategist who sees them coming from a mile away.

This is especially useful in industries like logistics, supply chain management, and financial services, where accurate predictions can save you a ton of money—and maybe even a few sleepless nights. And don’t worry, AI’s predictions won’t replace your gut instinct—they’ll just give it a little more data to chew on.

Trend #3: Embedding AI into End-to-End Financial Management Solutions

Imagine if your accounting software could not only track every penny but also anticipate what you need next and streamline your entire workflow. That’s the magic of embedding AI into financial management systems. It’s like having a personal assistant who knows your every move and never forgets anything (a little creepy). No more jumping between apps or losing track of crucial data. AI keeps everything flowing smoothly so you can focus on the bigger picture.

For industries with complex financial operations, like manufacturing or healthcare, this trend is a lifesaver. AI embedded in your financial systems means real-time data processing, automated reporting, and improved compliance—all without breaking a sweat.

How to Incorporate AI into Your Accounting Workflows

Incorporating AI into your accounting workflows, before you dive in, it’s important to figure out which tasks can benefit most from a little AI magic.

Approach to Incorporating AI:

1. Workflow Analysis: Start by taking a good, hard look at your current processes. It’s like cleaning out your closet—figure out what’s working, what’s not, and what could use a little AI sparkle.
2. Identify Repetitive Tasks: Highlight those mind-numbing, repetitive tasks that make you daydream about early retirement. These are prime candidates for automation.
3. Assess Data Complexity: If your tasks involve wrangling large or complex datasets, AI is your new best friend.
4. Evaluate Task Suitability: Some tasks need that human touch—like interpreting data or making strategic decisions. AI can lend a hand, but you’ll still be the one calling the shots.

Key Areas for AI Integration:

• Accounts Payable/Receivable: Let AI handle most of the invoice processing work.
• End-of-Month Reconciliations: AI can match transactions and identify discrepancies fast.
• Financial Reporting: Use AI to build your reporting packs.
• Budgeting and Forecasting: As discussed already AI makes sure your financial forecasts accurate (provided you give feedback) and make them objective.
• Fraud Detection: Put AI on fraud watch so you can sleep easy knowing your business is protected.
• Email Communication: Tame your inbox with AI that drafts, edits, and even summarizes emails but check them and add personalisations. Humans will know it’s AI till AI passes the Turing test.
• Workflow Automation: Automate approvals, notifications, and document management with AI, and say goodbye to chasing down signatures.
• Client Service: Use AI-driven chatbots to handle common client inquiries, so you can focus on the big stuff.

AI Tools On the Market right now

AI is like a buffet of high-tech goodies, and there’s something for everyone. Whether you’re looking to automate invoicing or analyze data, there’s a tool out there that can help you work smarter, not harder. Here are some of the top AI tools making waves in the accounting world:

• Chat GPT: Can help with everything from drafting emails and summarising documents to answering complex accounting questions in plain English. It’s like having a super-smart intern and knowledge system rolled into one. Whether you’re brainstorming new strategies or just need help organizing your thoughts, ChatGPT is the versatile tool that can keep up with your fast-paced workday.
• Bottom Line Or Kofax: Invoice Automation – Automating the capture, processing, and payment of invoices to improve efficiency.
• Karbon AI: Automating email and task management—because who has time to sift through hundreds of emails?
• Vic ai: Streamlines everything from invoice processing to financial reporting, so you can finally take that vacation.
• Docyt: The ultimate AI-powered bookkeeping tool.
• Blue Dot: Keeps you on top of VAT processes and employee-driven transactions, especially in European markets.
• Botkeeper: Combines AI with human oversight to keep your books in order, so you don’t have to.
• Rows AI: A spreadsheet editor on steroids—perfect for analyzing and transforming data without breaking a sweat.
• Receipt-AI: Snap a pic of your receipts and let AI do the rest—no more shoeboxes full of paper!
• Chat Thing: Create chatbots that can summarize complex docs and answer client questions—saving you time and headaches.

OK but how do you build AI in?

Main options are portal, API or embeded. The easiest is to just go to the respective portals and start using “manually”. But there are plenty of off the shelf API (Application Protocol Interface) now too. Slightly more technical. Or leverage embeded native AI such as Copilot, SAPs Generative AI, or D365 AI powered features (Predictive Analytics, Inventory Optimisation, Cash Flow Forecasting, Fraud Prevention, Customer Insights).

Chat GPT example

Integrating ChatGPT with Microsoft Dynamics 365 Finance & Operations (D365 F&O) involves several steps:

1. API Development: Create a custom API in D365 F&O to interact with external services.
2. Azure Integration: Use Azure services to host and manage the ChatGPT model. You can use Azure Functions or Logic Apps to call the OpenAI API.
3. Custom Logic: Develop logic in D365 F&O to call the ChatGPT API when specific triggers occur, such as generating responses for customer queries or automating tasks.
4. Embedding: Embed the ChatGPT interface within D365 F&O, using Power Apps or a custom web resource, allowing users to interact with ChatGPT directly within the application.

This setup allows ChatGPT to enhance the functionality of D365 F&O by providing intelligent automation and conversational capabilities.

…and activating embedded AI-powered features in D365?

To activate AI-powered features in Dynamics 365 Finance & Operations (D365 F&O), follow these general steps:

1. Ensure Licensing: Verify that you have the appropriate licensing for the AI features you want to use.
2. Enable Features in D365: Go to the D365 F&O settings or modules where these features are available, and enable them. For example, predictive analytics can be activated in relevant modules like sales or finance.
3. Configure AI Models: Set up and configure AI models within D365. For instance, configure predictive analytics or inventory optimization by selecting relevant datasets and parameters.
4. Connect Data Sources: Ensure your data is connected and integrated properly, as these AI features rely on high-quality data to function effectively.
5. Test and Monitor: After activation, test the AI features to ensure they work as expected. Regularly monitor and refine the models as needed.

Each feature may have specific setup instructions, so consult Microsoft’s official documentation or support for detailed guidance.

Conclusion: Embracing the Future of AI in Accounting

AI isn’t just the future of accounting—it’s a little fun (ask Chat GPT a silly question), efficient, and almost magical its like your Catweazle. With the right tools and a little bit of know-how, you can transform your accounting processes, boost productivity, and maybe even enjoy your work a little more. So, go ahead and embrace AI—you’ll be glad you did. And who knows? With AI handling the grunt work, you might finally have time to pick up that hobby you’ve been putting off. Good luck….and if you need a contractor let me know. Best regards RichFM