Artificial intelligence to alter financial landscape

Experts suggest that artificial intelligence (AI) has globally impacted businesses across industries. With an aim to understand its effects of AI on the finance and accounting industry, CIMA, a UK-based professional body, conducted a global survey across select Asian, European and African countries. The findings of the survey revealed that a majority of financial leaders believed AI helps enhance efficiency and accuracy of the business. 

This survey goes on to say more than two-thirds (64%) of finance professionals from India encourage increasing automation as it saves time, money and helps ease the indecision process in their organisations. Globally, Zimbabwe tops the chart with (75%) professionals supporting automation, followed by China (67%). This implies that accountants regard the impact of new technologies as an opportunity rather than a threat. 

On the flip side, only (29%) of surveyed financial professionals from India believe that increased automation will lead to a loss of jobs and lead to greater inequality. India has a second lowest percentage as compared to rest of the world. This is in stark contrast to the popular view that major job cuts will happen over the coming years as a result of automation and a rise in robotics. The CIMA study was conducted covering more than 3,000 select influential experts from leading financial firms across the world.

Bhaskar Ranjan Das, Head of South Asia, Chartered Institute of Management Accountants (CIMA) says, “While it’s possible to imagine advances in technology leading to mass redundancies, India’s finance departments have a less alarming view. A majority of professionals believe artificial intelligence, robots and other technologies will alter, but not destroy, the jobs of accountants and other professionals. Firms need to examine business models and turn innovations such as AI and automation into an opportunity and not a threat.” In terms of analysing the effects of increased automation on businesses, the CIMA study states that in India, more than (50%) of financial experts feel that better automation and data analysis enable companies to become more efficient and bring a better work-life balance amongst the workforce. However, as per global ranking, China becomes the top country with (66%) of a positive feedback. 

The study points out that despite a rising demand for automation, skilled human capital continues to hold a significant and valuable position in the organisation, which technology can never replace. With regard to an impact of AI on strategic decision-making, only 13% experts in India conceded that a reliance on automation or technology has led to their firm taking the wrong decision. But, a large percentage of finance experts from India (47%) agree that it has never happened in the past. However, they suggest refraining from relying on automated processes extensively and recommend to double check the work manually. In comparison to the rest of the world, a majority of experts (54%) in UAE strongly hold the same view.