The Artificial Intelligence (AI) revolution is upon us. We’ve seen how it’s changed the telecommunications industry. We’ve seen how it’s made our homes ‘smart.’ And we’re even seeing how it’s reshaping transportation with self-driving vehicles.
Just like when automobiles started replacing horse and buggies more than a century ago, there’s always a certain amount of resistance to change. But when you’re equipped with the knowledge on how AI work, you’ll start to experience how it can make your life easier and help your organisation’s bottom line.
The Association for Finance Professionals (AFP) found that 58% of finance and treasury professionals say the biggest hurdle to adopting emerging technologies in their organisation is “awareness and engagement.” But to help add clarity on how AI can bring about significant change for your organisation, let’s first zero in and review some of the basic terminology.
AI Terminology 101
Artificial Intelligence (AI) is often a general term for various technologies based on advanced automation, data analysis techniques, and the development of computer systems that are able to perform tasks normally requiring human intelligence.
Robotic Process Automation
Robotic Process Automation (RPA) is a mechanical process that can replicate manually intensive processes normally carried out by humans. This can range from simple process replacement, such as scanning technology, to predictive analytics and big data analysis. RPA makes it possible to scan invoices and automatically prepare payments, create logic and rules to help validate auto-match invoices, monitor compliance, and route exceptions.
It’s important to note there are 3 levels of RPA learning. You can also read our blog “Think All AI is the Same?” for the varying differences between the three levels of RPA technology, and learn how it can positively impact finance departments.
This is one of the more advanced versions of AI. Machine learning has the ability, much like humans, to ‘learn as it goes’ so it can adapt to new information and quickly self-correct. It has the ability to focus on exploring large data sets to find patterns of behaviour and incidents, giving it the ability to construct complex algorithms that cluster or predict future similar events – all automatically and all without having to be explicitly programmed. The technology learns a customer’s behaviours and patterns of payments and then uses the information and behaviour to follow the action next time – without the need for human intervention.
This is a term to help describe the vast amounts of endless data that may be analyzed to reveal patterns, trends, and associations. One huge benefit of utilising big data is that it can impact nearly every aspect of auditing, tax, accounting, and advisory services.
A close cousin to machine learning, predictive analytics is the practice of extracting information from existing data in order to determine patterns and predict future outcomes and trends. This helps companies take advantage of raw data that isn’t being fully utilised and picks out patterns that are not visible in a spreadsheet or simple graph. This type of software can exploit patterns found in historical and transactional data to identify risks and opportunities. For finance teams this can be tremendously helpful where there is a huge amount of historical data, such as in credit collections and credit management, providing additional intelligence to make strategic decisions.
Cognitive computing involves self-learning systems that use data mining, pattern recognition, and natural language processing to mimic the way the human brain works and reasons. For financial departments specifically, this can help by providing suggestions on how to perform cash allocation and presents cash allocation options.
Are you ready for all of the possibilities?
We hope you have a better understanding of the power of AI so you’re better equipped to envision how it can make an impact in your organisation. Our customers have seen an average increase of 60% collections per day and a reduction in 60-day aged debt by 80%, all with the help of AI and RPA. You too can benefit tremendously from the new opportunities of a more efficient, ‘learn-as-it-goes’ process that can increase your organisation’s bottom line.
Do you want to learn more about how Rimlia can help you integrate AI into your organisation? Contact a Rimilia sales rep for a demo.
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