Why autonomous finance is the key to mitigating non-compliance and fraud
How finance leaders can go beyond automation to protect the organization and avoid financial loss
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FAQs
Finance leaders face three major obstacles in their goal to mitigate financial risk – human error, non-compliant employee behaviors (whether inadvertent or not), and the growing sophistication of both internal and external fraudsters.
The cost of failing to overcome these challenges is great:
This is where the digital transformation comes into play.
The trillion dollar transformation is on
Organizations all around the world and across almost every industry are charging headlong into a digital transformation. Indeed, the benefits of digitization are broad and wide, including:
- Data informed decision-making
- Improved visibility and control
- Enhanced compliance with regulatory requirements
- Increased operational efficiency
So it’s no surprise that by 2027, digital transformation spending is forecast to reach $3.9 trillion.
For finance leaders, going digital plays a very important role in elevating risk mitigation capabilities. In fact, according to a report by PwC, 68% of CFOs and finance leaders continue to increase investment in digital transformation.
Transforming finance operations with AI
Artificial intelligence (AI) takes the benefits of the digital transformation even further by delivering previously unattainable insights and enabling predictive capabilities.
This makes the lure of AI great, as highlighted in a recent study by KPMG. It shows that 59% of finance managers at companies with sales of over $1 billion are already leveraging AI-powered tools across multiple processes.
Automation for the people
Another highly valued advantage of AI is its power to drive the automation of manual processes, for improving efficiencies, increasing accuracy, and reducing costs.
However, simply automating repetitive tasks will not transform risk mitigation. To better protect the organization from the growing risk of financial loss, finance leaders need to move beyond automation towards autonomous finance.
Transcending automation with autonomy
“We’re seeing widespread acceptance among finance leaders that technology is driving finance processes towards an autonomous state of operation”
(Gartner)
The shift to autonomy is underway, with nearly two-thirds of finance leaders surveyed by Gartner estimating that their function will reach an autonomous state within six years.
The promise of autonomy is great. While automated finance certainly promotes great efficiencies, autonomous finance transcends automation by making complex strategic decisions that impact the health of the business. And all this without human intervention.
Embracing the change
On the technology side, accelerating the journey to autonomous finance requires solutions that enable:
- Deploying quickly and easily with minimal effort and zero IT overhead.
- Auditing insights with explainable AI for transparency and findings that can be trusted.
And according to Gartner, CFOs need three key mindset shifts to secure success:
- Taking small steps to experiment with technology by running small scale pilots, for seeing the potential benefits faster.
- Trusting autonomous solutions to provide the requisite insights for making accurate decisions.
- Leading by example, because when leadership embraces autonomization and communicates this confidently to their teams, change management becomes easier.
Use case: autonomous risk mitigation
One vitally important benefit of autonomous finance is the advent of autonomous risk mitigation. This enables every financial business process, such as procure-to-pay and order-to-cash, to be autonomously mapped and continuously monitored, for detecting, preventing, and mitigating risk in real time.
And this is exactly what the Datricks platform does. As a self-learning and completely autonomous system, it automatically maps and monitors every new document, event, and process, continually learning the organization’s risk environment.
It surfaces unseen anomalies, identifies threats to financial integrity, and sends real-time alerts with insights about the root cause. This way the team can prevent risk from turning into financial and reputational damage, such as in these recent cases:
- Facebook executive steals $4.9 million by forging vendor invoices
- Amazon manager diverts $10 million into her own account by creating fake invoices
In conclusion
Finance leaders today don’t have to wait to capture the benefits of autonomous finance. With AI-powered automated risk mining from Datricks they can prevent risk from turning into financial loss, make an unprecedented impact on business health, and protect the organization like never before.
To learn more about how Datricks can help you capture the strategic benefits of autonomous finance, we invite you to reach out to us at www.datricks.com/contact-us..