Artificial Intelligence (AI) is no longer a futuristic idea. It's here, and small to medium-sized businesses (SMBs) in accounting and financial services are embracing this new technology as an everyday tool. Business owners now recognize the potential of AI in accounting and financial services to transform everything from daily tasks to strategic decision-making.

According to The State of Financial Automation report, 85% of finance leaders are enthusiastic about adopting AI for better decision-making. A 2023 poll from the Bipartisan Policy Center and Morning Consult reveals that 83% of small business owners using AI find it helpful in aspects of their business such as improving systems and increasing efficiency.

These numbers underscore the widespread recognition among business owners that AI in accounting and finance is a powerful tool with tangible benefits for the bottom line.

Transforming everyday tasks with AI in finance and accounting

AI is already reshaping how accounting and financial services operate, impacting everyday tasks. AI-powered software and tools streamline operations, can help reduce errors, and can help save employees valuable time for more strategic activities.

Finance and accounting teams use automation tools and integrated solutions to help close books more quickly, improve customer relationships and control and manage employee expenses. Using AI in accounting can help automate daily tasks that have historically been time-consuming and prone to human error, including:

• Invoice and expense processing. AI can automatically extract data from invoices and receipts, categorize expenses and match transactions.
• Reconciliation. AI and automation can efficiently reconcile bank statements and other financial records, quickly identifying discrepancies and potential errors.
• Audit preparation. AI can assist in audit preparation by analyzing financial data to identify potential risks or anomalies, thereby streamlining the process.

Financial service providers are also finding AI to be a valuable asset for the following:

• Risk and fraud detection. AI algorithms analyze data in near real-time, identifying patterns that may indicate fraudulent activity or risk.
• Financial planning. Robo-advisors can personalize investment portfolios, provide automated financial advice and adjust strategies based on changing market conditions.
• Regulatory compliance. AI can automate compliance checks, monitor transactions for suspicious activity and generate reports required by regulators.

Small business owners can use AI to help save valuable time, ensure accuracy, streamline processes and minimize the risk of costly errors or oversights. AI empowers businesses of all sizes to operate more efficiently, help make better decisions and achieve greater success by automating routine tasks—like maintaining spreadsheets or invoices—and providing data-driven insights.

AI in accounting: Choosing the right tools for your business

Implementing AI in finance and accounting doesn't have to be overwhelming. The key is understanding the solutions available and selecting those that best align with your needs, infrastructure and budget. Here are some to consider.

Specialized accounting and finance platforms

These platforms are designed specifically for the accounting and financial services industry, offering pre-built AI capabilities tailored to common tasks like invoice processing, expense management, tax preparation and financial reporting. They often integrate seamlessly with existing accounting software, making them a convenient option for businesses looking for simple ways to incorporate AI into existing processes and workflows.

General-purpose AI platforms

These platforms can offer more flexibility and customization for SMBs, allowing you to tailor AI solutions to your unique business needs. For example, you can apply these tools to a wider range of tasks, including customer service chatbots, data analysis and predictive modeling. However, they may require more technical expertise to implement.

Cloud-based vs. on-premise installations

Cloud-based AI tools are hosted on remote servers. That offers your business accessibility and scalability while typically having lower upfront costs. On-premises solutions, on the other hand, are installed and maintained on your servers. That can provide greater control over data and customization but may require more investment and IT resources upfront for development, maintenance and security.

AI in accounting: Key considerations for selecting the right tools

When evaluating solutions for AI in finance and accounting firms, review the following factors:

• Ease of use and integration. Research user-friendly tools that integrate with your existing systems and workflows.
• Scalability. Ensure tools can grow with your business and accommodate increasing data needs or complexity.
• Data security and privacy. Prioritize solutions that offer strong security measures that help protect sensitive data and comply with regulations.
• Cost-effectiveness. Consider the total cost of implementing and running these solutions, including upfront fees, subscriptions and expenses for maintenance or upgrades.
• Vendor support. Work with a vendor with a proven track record in the industry and a strong reputation for customer support.

AI in accounting and finance requires a robust network

Specific network infrastructure requirements for AI implementation can vary depending on the solution’s complexity and your current setup. However, there are some general considerations for SMBs to think about, including:

• Bandwidth. AI applications often require high processing and data-transferring speeds; a high-bandwidth network connection like 5G edge can be essential for smooth operations.
• Latency. Low latency, the time it takes for data to move between points on a network, is crucial for near real-time tools like fraud detection or trading.
• Security. Strong network cybersecurity measures—including firewalls, detection systems and encryption—can help protect data from unauthorized access and cyber threats.
• Reliability. A reliable network connection ensures minimal downtime and disruptions to your network and operations.

Investing in the right infrastructure for future growth can help create a solid foundation for successfully implementing AI and seeing the benefits of this technology.

AI in the finance industry: A path forward for AI in accounting and finance SMBs

Implementing AI in accounting and finance is not a one-size-fits-all approach. Carefully assess your needs and evaluate different solutions to find the tools that best fit your business and provide new opportunities for growth and efficiency.

Don’t just automate your business. Partner with a service provider to make it even smarter, help improve customer experiences and boost operational efficiencies.

Learn more about how Verizon’s advanced 5G network and internet solutions can support emerging immersive technologies in accounting and finance companies.

The author of this content is a paid contributor for Verizon.