How AI is Changing Finance
Artificial Intelligence (AI) is playing a growing role in finance, helping businesses automate reporting, improve forecasting, and detect errors. According to a recent survey by UK Finance, over 75% of financial institutions are already using AI, with n increasing number investing in automation to improve efficiency.
However, AI does not replace the expertise of finance professionals. It is a tool that supports decision-making, allowing CFOs and finance teams to work more efficiently and focus on strategy rather than repetitive tasks.
For CFOs, the challenge is not just understanding how AI works, but knowing which skills and processes need to adapt to ensure finance teams can fully benefit from automation.
AI is Automating Repetitive Tasks, but Human Oversight is Essential
AI-powered finance tools are already capable of handling many time-consuming processes, such as:
- Reconciling financial data
- Month-end closing
- Detecting anomalies in transactions
- Generating real-time reports
However, AI can only work with the data that it is given. It can analyse trends and highlight unusual activity, but it cannot understand the context behind the numbers. For example, AI might predict an increase in revenue based on past data, but it will not be aware of potential supply chain issues that could impact sales unless a finance professional intervenes.
According to a 2024 study by the Bank of England, only 46% of firms fully understand the AI systems they use, reinforcing the need for human interpretation and validation of AI-generated insights.
Finance professionals will always be required to assess financial data critically, challenge assumptions, and apply industry knowledge that AI alone cannot replicate.
Data Science is Becoming a Key Finance Skill
AI uses data models to generate forecasts, but finance teams need to know how to assess and apply these predictions. Without a basic understanding of how AI-driven insights are produced, finance teams risk making decisions based purely on AI outputs without questioning their accuracy.
A Deloitte UK report found that 23% of financial services firms have fully embedded AI into their operations, more than in any other sector. However, many organisations still struggle with interpreting AI-generated forecasts and ensuring they align with business strategy.
To stay ahead, finance teams should develop skills in:
- Understanding predictive analytics and how AI models generate forecasts
- Validating AI-driven insights rather than relying on them without questions
- Identifying trends and anomalies in financial reports and understanding their business impact
Finance professionals do not need to become data scientists, but they should be able to interpret and challenge AI-generated outputs to ensure they are reliable and relevant.
Automation and Basic Coding Skills Give CFOs a Competitive Edge
As AI becomes more embedded in finance, basic automation skills are increasingly valuable. Many AI-driven finance platforms, such as NetSuite, allow businesses to automate workflows and reduce reliance on manual reporting.
Finance teams that understand how to integrate automation into daily tasks can:
- Eliminate repetitive work such as manual data entry and reconciliations
- Generate real-time financial reports without waiting for end-of-month processes
- Use simple coding or automation tools to extract financial insights more efficiently
A report by Finextra predicts that UK financial firms will allocate 16% of their technology budgets to AI and automation by 2025, up from 12% in previous years. CFOs who embrace automation now will position their finance teams ahead of competitors who still rely on manual processes.
While CFOs do not need to be software engineers, understanding automation tools and how the interact with finance systems will become an increasingly important skill.
Data Visualisation is Becoming Essential for CFOs
CFOs and finance teams generate vast amounts of financial data, but if that data is not presented clearly, it can be difficult for decision-makers to interpret.
Instead of relying on traditional spreadsheets, many finance teams are now using AI-driven dashboards and reports to communicate financial performance more effectively. AI tools, such as NetSuite SuiteAnalytics, help businesses:
- Turn complex financial data into clear charts and reports
- Spot trends and risks earlier with visual data analysis
- Present financial insights in a way that is easy to understand
A study by the Financial Conduct Authority (FCA) found that firms using AI-powered data analytics were able to reduce financial reporting errors by 30% simply by improving the clarity of their reports.
For CFOs, being able to present data in a clear, structured, and actionable way is just as important as generating the data itself.
Final Thoughts: Making AI Work for our Finance Team
AI is no longer a futuristic concept – it is being used in finance teams across the UK right now. But while AI has clear benefits, the real challenge is knowing how to use it effectively.
Many CFOs know AI could make their teams more efficient, but they are unsure how to implement it, optimise workflows, or upskill their teams. Without the right approach, AI can become just another system that does not deliver real value.
This is where Cofficient comes in. As NetSuite implementation experts, we help finance teams use AI-powered tools properly, ensuring automation actually improves efficiency and decision-making. Whether it’s AI-driven financial reporting, forecasting, or workflow automation, we make sure your finance team gets the most out of AI – without the confusion.
If you want to ensure your finance team is ready for AI, contact Cofficient today!
