Why the finance function needs to leverage RPA and AI

The latest CFO Barometer surveyed how far CFOs and their companies use RPA and AI. The results show a lot of room for growth.

When harnessing technology and innovations for cost efficiencies, not every CFO looks favorably at technologies such as robotic process automation (RPA) and artificial intelligence (AI). In fact, 26.67% of respondents to the CFO Barometer say they are dissatisfied with the evolution process with RPA. This can be partly explained by the fact that some CFOs are running RPA without a solid foundation. You may have high expectations, but as an enabler, you have to realize that these technologies also take time and require something from the workforce.

The answers vary when asked whether our respondents are also willing to leverage technology and innovations to achieve cost efficiencies. Some CFOs are willing to invest to achieve cost efficiencies. Other CFOs prefer to stop investing and gain efficiencies by spending less budget. One company is put on pause while another sees the value of investing in it.

A right mindset is the blueprint for success

The survey shows that finance professionals know they can be a frontrunner in driving technology transformation. But many are not yet fulfilling the role fully. We have strong CFOs who embrace technology and make it accessible to the organization, but some CFOs do not have or want the mandate. CFOs just need to realize that there is a huge opportunity here for finance.

A proper mindset is also sometimes missing with CFOs, for example, to realize just how RPA and AI can provide added value, especially in the future. 30 percent of CFOs say they do not immediately see the potential and the need. And that is quite striking. Fortunately, however, the majority are convinced. They realize that RPA and AI will reduce the team workload, speed up the closing process, optimize processes by eliminating repetitive tasks, etc.

Why other transformation initiatives should not delay RPA & AI implementation

Respondents also indicated that, for now, they are waiting for larger transformations, such as an ERP implementation, before rolling out technologies such as RPA and AI. Some CFOs wait and decide not to undertake anything with RPA and AI because they assume these technologies will eventually come their way. But there is no reason to delay getting started with RPA or AI. Such technologies can be perfectly implemented before or during a larger finance transformation. After all, with an ERP implementation, processes also need to be mapped and efficiencies sought. You can certainly leverage RPA, and after a large(r) transformation it can even serve as an interface between the different applications you use. Even if your ERP needs more standardization and automation, you can still evolve with RPA or AI, or vice versa.

Process maturity is the decisive factor

In general, we can say that RPA has a rapid implementation and return. Therefore, it is not the infrastructure that creates a potential problem, but rather the maturity of the processes and the exceptions they bring. You cannot start automating aimlessly, because you will get into trouble. You have to look at the processes, redesign them and make them as efficient as possible. Then you are going to have a good implementation of RPA. That is the core of success. Learn to walk before you run is an actual quote from one of the respondents. And nothing could be further from the truth.