Fabian Calle, managing director for small and medium businesses, SAP Concur Australia and New Zealand said, “It’s the tried and tested saying: work smarter, not harder. It may be a cliché, but it’s true. AI and automation can have a significant impact on how a business runs, especially when it comes to managing expense and invoice processes, which are universally known as complex and often frustrating tasks.”
As businesses race to implement AI and automation, business leaders are eager to capitalise on the benefits while managing associated risks carefully. This places finance managers in a crucial position tasked with providing rapid and accurate assessments of AI investments’ value. However, the unique characteristics of AI projects, coupled with the rapidly evolving landscape of applications and uncertain timing of benefits, make traditional ROI calculations challenging. To address these challenges, successful AI projects must emphasise effective data management, consistently track results, and maintain rigorous standards for security, privacy, and ethics.
Businesses must approach these technologies strategically to unlock the true value of AI and automation. There are three areas where AI and automation can drive transformation.
- Make smart decisions through data-driven insights
Businesses generate overwhelming amounts of data. AI and automation turn that data into actionable insights by identifying patterns, trends, and anomalies. For example, analytics tools analyse expense data, flag irregularities, and suggest cost-saving opportunities. AI-driven forecasting models also predict spending patterns by analysing historical expense data, seasonal trends, and budgetary cycles. This lets finance teams proactively adjust budgets, prepare for fluctuations in cash flow, and make informed decisions for long-term financial planning.
- Simplify invoicing and payment processes
Managing invoices and payments can be tedious. AI and automation streamline the entire accounts payable process. Automated systems can capture electronic invoices, match them with purchase orders, and ensure timely vendor payments. This not only reduces manual errors but also helps businesses to take advantage of early payment discounts, improving cash flow management. Integrated expense and invoicing solutions provide a unified view of spending, making it easier to track and control costs.
- Streamline expense management and compliance
Complying with regulations and managing risk isn’t easy. AI and automation can simplify this by ensuring accurate and timely reporting, monitoring for compliance breaches, and identifying potential risks before they become problems. For example, expense management software can automate expense data tracking and reporting, ensuring regulatory compliance.
Overcoming implementation challenges
Successfully implementing AI and automation requires more than just technical deployment. Businesses must build the right foundation from the start. Investing in strong data practices, the right technologies, skilled talent, and streamlined business processes is essential for maximising ROI. These long-term investments deliver ongoing value by improving efficiency, reducing costs, and preparing operations for the future. With the right groundwork in place, businesses can overcome common implementation challenges and achieve lasting success.
While the benefits of AI and automation are clear, implementing these technologies effectively requires consideration of various factors:
- Comprehensive cost assessment
Businesses must account for a wide range of implementation costs, including data management, technology infrastructure, talent acquisition, training, change management, and user experience optimisation. Additionally, businesses need to factor in expenses related to ethical considerations, data security, regulatory compliance, and overcoming user scepticism.
- Holistic ROI calculation
Beyond the obvious measurement of efficiency and productivity, ROI assessments for AI projects should incorporate a broader set of factors. While many AI efforts focus on driving short-term gains in these areas, businesses can achieve lasting differentiation by considering additional elements. These may include quality improvements, innovation potential, enhanced compliance, fraud reduction, brand reputation enhancement, and the long-term benefits of a data-driven culture. User adoption rates, training effectiveness, and change management success are also critical elements in determining the overall success of an implementation.
- Skill development and experience building
Internal expertise is a key determinant of AI project success. Businesses with more advanced AI capabilities can look beyond immediate productivity gains and cost reductions to uncover new insights and drive innovation. Investing in skill development and gaining experience with AI tools is essential for long-term success.
- Phased approach and momentum building
Businesses embarking on their AI journey should focus on achieving simple early wins to build evidence of tangible impact. Successful experiments should be scaled up quickly, leveraging cloud platforms where possible, to justify larger AI investments.
A strategic investment for the future
Fabian Calle said, “Investing in AI and automation is a strategic move for long-term success. Early adopters will better adapt to changing market conditions and customer expectations. AI and automation help businesses manage costs more effectively by automating expense tracking, analysing spending patterns, and optimising budget allocation, which reduces administrative burdens and enhances decision-making.”
Moreover, embracing AI and automation can help attract younger professionals who are eager to work with cutting-edge technologies that amplify their impact and career opportunities. This technological adoption can also appeal to workers who value work-life balance by automating routine tasks and freeing up time for more strategic work.
As businesses navigate the AI and automation landscape, it’s crucial to remember that these technologies are not meant to replace human workers but to augment their capabilities. The goal is to empower employees to focus on more strategic, value-added work while leveraging technology to handle repetitive tasks and provide data-driven insights.
Fabian Calle said, “AI and automation touch so many aspects of a business, which adds complexity when trying to quantify their ROI. However, despite this challenge, the advantages are clear. By focusing on high-potential projects, securing early wins, and taking a holistic view of both costs and benefits, businesses of all sizes can unlock the true value of AI and automation, positioning themselves for long-term success.”
