Artificial Intelligence -- Potential and Implications for Finance
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Transcript of Artificial Intelligence -- Potential and Implications for Finance
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Timo Elliott, Innovation Evangelist
Artificial Intelligence: The Potential and Implications for Finance Leaders
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Artificial intelligence
AI is a “sociotechnical construct” indicating machine capabilities which solve complex tasks that were
recently only possible by humans (equally well or better)
Technical disciplines that
solve business problems
through the extraction of
knowledge from data.
Deep learning
Machine learning
Data Science
Big Data
Advanced
Analytics
Predictive
Analytics
Data
mining
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Why now?
Big DataAlgorithms Hardware
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Algorithms are taking over
Voice transcription Lip reading Image Descriptions
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What’s different with machine learning?
Classical software must
be programmed
Humans learn from
experience
Machine learning learns
from data
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Data Training Inference
Apply
model
Services(such as invoice processing,
profile matching)
…and more
Applications (such as cash application)
Text
Image
Video
Speech
… and more
Train
model
Prepare
data
Capture
feedback
How does machine learning work?From data to insights
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In the future, all processes will be “self-improving”
Do your financial processes
improve automatically over time?
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40% 70% 94%
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Machine learning everywhere
Source; McKinsey & Company
Machine learning has
broad potential across
industries and use cases
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Automating end-to-end processesIncrease efficiency and reduce costs
Detect and prevent Detect and rank information out of Big Data
PredictDerive knowledge from historical information to
increase the accuracy of predictive scenarios
Proactive context-sensitive supportDigital assistants boost productivity of financial experts
Machine learning for financeChanging the world of finance by adding intelligence to applications
Automate
PredictDetect
Assist
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Big opportunities
Source: http://gartner.com/SmarterWithGartner
“In 2018, half a billion users will save two hours a day
thanks to AI-powered tools.” Gartner
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Finance of the futureInverting the effort pyramid through automation
Strategy
and growth
Keeping the
lights on
Compliance, efficiency,
and business performance
Strategy and
growth
Keeping the
lights on
Today 2020
Automation
“Up to 70% of finance tasks are potentially automatable
with next-generation technologies”(McKinsey 2016)
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Example: accounts receivable teams
Joni Chen
AR accountant
Lump sum
Missing infoDiscounts
Exchange
Customer
call
???
Payments
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Intelligent Invoice Matching
History
Payments
Invoices
Matching proposals
Intelligently learn matching criteria from your history and
automatically clear payments.
Machine Learning
Improves days sales
outstanding
Allows shared services to
scale as the business
grows
Empowers finance to
focus on strategic tasks
and service quality
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Automatic extraction of information from invoices
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Companies with 10,000 employees
and more process 300,000+ invoices
every year
A subset of these needs to be corrected,
because of formal or content errors
Historical data is used to identify
patterns for invoices that need
corrections
These patterns are used to warn the
approver proactively
Intelligent invoice correctionProactively improve invoice accuracy
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Automatic extraction of information from employee expenses
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Record
to Report
Procure
to Pay
Order
to Cash
Eliminate manual FI/CO reconciliation efforts and make business self-service access
to data easier and more intuitive
Improve forecast accuracy, accelerate and automate the financial close along with lower
compliance and auditing costs
Significantly simplify and automate the interaction between buyers and suppliers through
digitizing the exchange of information and achieve high invoice automation rates
Automate core Accounts Receivable processes like Credit Management, Dispute
Management and Cash Application
Plan to
Forecast
Using AI to help automate End-to-End processesIncrease efficiency and reduce costs
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Automating end-to-end processesIncrease efficiency and reduce costs
Detect and prevent Detect and rank information out of Big Data
PredictDerive knowledge from historical information to
increase the accuracy of predictive scenarios
Proactive context-sensitive supportDigital assistants boost productivity of financial experts
Machine learning for financeChanging the world of finance by adding intelligence to applications
Automate
Predict
Assist
Detect
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Fraud investigators can detect unknown fraud patterns and reduce false
positives leveraging their company’s investigative history – without expert
knowledge in data science and algorithm tuning.
Detection of new fraud patterns
Reduction of false positives
Predictive detection methods allow your business analysts and fraud
investigators to
Automatically detect and rank attributes within classified data that positively
correlate with fraudulent cases;
Incorporate them with existing detection methods into new fraud management
strategies.
Business integrity screeningDetect and rank information that positively correlates with fraud
Detect Fraud
Reduce false positives
Save money
Fraud Management Team
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Assist
Detect
Automating end-to-end processesIncrease efficiency and reduce costs
Detect and prevent Detect and rank information out of Big Data
PredictDerive knowledge from historical information to
increase the accuracy of predictive scenarios
Proactive context-sensitive supportDigital assistants boost productivity of financial experts
Machine learning for financeChanging the world of finance by adding intelligence to applications
Automate
Predict
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Augmenting financial analysis with artificial intelligence Bringing together actuals, forecast and simulation to uncover market trends before they happen
Cleanse and
match data from
different sources
Spot outliers, perform
forecasts, and
determine causality
Share and
operationalize data
more intelligently
Run what-if analysis
and zero-in on key
influencers for any
business challenge
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Predictive accountingAccelerate accounting processes by machine learning powered forecasting
Create a common view
of all financial &
operational data
Predicts key
accounting KPIs & how
they impact key metrics
Provides easily
consumable reporting
Anticipates the impact
of currency fluctuations
for the end of a period
Optimize processes to close the financial books at the end of every fiscal period, and
reduce costs, cycle times, and error rates.
Data of
former
period end
positions
ML used to forecast
costs, revenues &
recurring costsMachine Learning
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Constantly-updated predictive key performance indicators
Group
Prediction
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Predictive accounting vision
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DetectPredict
Automating end-to-end processesIncrease efficiency and reduce costs
Detect and prevent Detect and rank information out of Big Data
PredictDerive knowledge from historical information to
increase the accuracy of predictive scenarios
Proactive context-sensitive supportDigital assistants boost productivity of financial experts
Machine learning for financeChanging the world of finance by adding intelligence to applications
Automate
Assist
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Digital enterprise assistants and self-service finance
Business context awarenessUnderstanding the business context, and pro-actively
suggesting solutions using predictive functionality
Conversational user interfaceConversational interface that uses natural language processing
functionality to create a human-like experience
Cross applicationsAllows seamless transition across platforms; start a task on a
mobile device and continue later, on a desktop or vice versa
Self learning Using machine learning functionality to gain knowledge based
on historic data, experience, and take action in response to new
or unforeseen events“By 2020, the average person
will have more conversations
with bots than with their spouse”
Gartner
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Your data is your most important asset
Investments in systems to ensure high-quality, consistent data will be even more amply rewarded
Invest in gathering leading “signal” data (e.g. social sentiment data, or foot-traffic statistics) to
augmented “lagging” finance data
It’s about people
Automation is a huge opportunity, but it’s also about “augmented intelligence” – displacing work, not
replacing workers
Watch out for side-effects
You’re delegating more decision-making to machines: make sure there’s still oversight and auditing
New ways of working
Implementing AI in new ways requires new skills – your strategic partners can help!
Implementing AI: requirements for success
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Thank you.
Contact information:
Timo Elliott
VP, Innovation Evangelist
SAP
timo.elliott@sap
@timoelliott