From Automation to Insight: How AI Is Used in Finance

With the amount of work Artificial Intelligence (AI) can handle, it’s no wonder why even the finance and accounting industry is embracing it, not just to keep up with current trends, but to transform its operation, stay profitable, and gain a competitive edge in a fiercely competitive market. 

From Concept to Daily Operations 

AI used to be a futuristic concept, but today, it’s becoming a practical tool that is reshaping how firms manage day-to-day tasks and serve their clients. From automating invoice processing and bank reconciliations to generating reports and identifying errors in real-time, AI is taking on the grunt work that once demanded hours of manual labor. 

In fact, a 2024 survey by the Bank of England showed that 75% of firms are already using AI, with another 10% planning to adopt it within the next three years. That’s a significant increase from 2022, when only 58% were using it and 14% had future plans. The message is clear: AI isn’t optional anymore—it’s becoming essential. 

In this blog, we’ll walk you through how AI is used in finance, the benefits it brings to firms like yours, and the challenges you should be aware of as you consider using it internally. 

Here's what we'll be tackling: 

1. What is Artificial Intelligence (AI) in Finance? 

2. How Is AI Used in Finance?

3. Benefits of AI in Finance

4. Challenges and Risks of Using AI in Finance

5. AI Use Cases in Finance and Accounting 

What is Artificial Intelligence (AI) in Finance? 

In simple terms, AI refers to technology that allows systems to process and analyze large volumes of data in a way that goes far beyond traditional software.  

And in the context of finance and accounting, tasks that once required hours of manual effort like reviewing transactions, generating financial reports, or spotting irregularities can now be completed faster, more consistently, and often in real time. 

Read: How AI is Helping Accountants and CFOs in the Finance Industry 

How Is AI Used in Finance?

AI is no longer limited to science fiction; it is being used every day by finance professionals to streamline processes and gain insights that would take hours or even days to find manually. 

Whether its helping clients manage their finances more accurately or making internal workflows more efficient, AI is now deeply embedded in how modern firms operate. 

Here are some of the most common and practical ways AI is used in finance today: 

1. Personalized Financial Services and Products 

One practical way that AI is being used in finance is through service and product solutions that are tailored to each client’s unique needs. Instead of offering a one-size-fits-all approach, AI analyzes data such as spending habits, transaction history, and financial goals to create highly personalized recommendations. 

For example, it can suggest customized budgeting plans, investment strategies, or loan products that match a client’s exact circumstances. This level of personalization not only improves client satisfaction but also strengthens trust, as clients feel their financial partner truly understands and supports their objectives. 

2. Creating New Opportunities 

Aside from delivering personalized recommendations, AI also plays a key role in identifying and capturing new opportunities—both for clients and for the firms that serve them. 

For instance, it can identify untapped customer segments, highlight promising investment options, or spot early signals of changing market conditions. 

3. Risk Management and Fraud Detection

Another key use of AI is detecting potential risks before they become costly problems. By learning what normal account activity looks like, AI systems can flag unusual transactions, duplicated payments, or unauthorized access—helping firms respond quickly to possible fraud or operational errors. 

4. Transparency and Compliance

As with any good organization, compliance isn’t just something you need to tick, it’s an important part of maintaining trust with clients, regulators, and the public. Good thing, having AI within your processes can help you strengthen that trust as AI can help you monitor things, flag potential violations, and generate reports in minutes instead of days. 

5. Predictive Analytics and Forecasting

In the same way, AI’s predictive power extends to anticipating the future by analyzing trends, seasonal patterns, and market conditions, enabling it to forecast cash flow, predict late payments, or highlight potential financial risks. This gives firms the ability to make proactive decisions instead of reactive ones. 

6. Customer Service and Chatbots

Another effective way AI is used in the finance industry is by transforming client communication. Having AI-powered chatbots in the organization helps instantly answer questions about billing, deadlines, or document requirements—reducing the need for back-and-forth emails and phone calls.  

When the system is automated and seamlessly integrated into your internal processes, these chatbots can work around the clock, delivering quick and accurate answers that allows you to improve client satisfaction overall. 

Read Next: Advantages and Negative Impacts of AI in Accounting and Finance 

Benefits of AI in Finance 

Now that we’ve seen how AI is making its mark in the finance and accounting industry, let’s take a closer look at the concrete benefits it brings to the day-to-day operations of an organization.  

Below are some of the key advantages: 

a. Save Time and Improve Accuracy 

AI allows you to automate repetitive processes like data entry, invoice processing, and reconciliation in a faster and more accurate way. On top of that, using this tool reduces the risk of costly human errors that could potentially harm your firm’s reputation. 

Think of the hours your team currently spends on manual tasks — scanning invoices, entering numbers, double-checking reconciliations. AI can handle all of that in minutes, freeing your staff and allowing them to focus on value-adding work that actually moves the needle, like strategic planning or client advisory. 

And because AI systems operate based on consistent rules and learn from historical data, accuracy only improves over time. That means fewer discrepancies, faster month-end closings, and a smoother audit process. 

Example applications: 

• Scanning and extracting data from invoices automatically 

• Matching transactions to bank records in real-time 

• Automating expense categorization for faster reporting 

b. Gain Insightful Analysis 

To give your decision makes actionable insights, then AI should be something that your organization should have since it can quickly sift through massive amounts of financial data, spotting patterns, anomalies, and market shifts you might otherwise miss.  

This means that every time your organization decides on something like an investment, scaling operations, or entering a new market —you’re backed by accurate, data-driven intelligence. 

What this looks like in practice: 

• Spotting seasonal demand changes months in advance 

• Identifying underperforming revenue streams before they become a bigger problem 

• Tracking competitor trends to anticipate market shifts 

c. Prevent Fraud and Manage Risk 

As previously discussed in our blog on AI in fraud detection, AI’s ability to detect unusual patterns in real-time makes it a powerful defense against fraud. 

Traditional methods often catch fraudulent activity after the damage is done. AI, on the other hand, can flag suspicious transactions as they happen — giving your team a chance to act before a small issue snowballs into a major loss. 

In practice, this means: 

• Detecting unusual login locations or access times in accounting systems 

• Flagging transactions that fall outside normal spending patterns 

• Assessing risk exposure by analyzing credit histories, payment behaviors, and market conditions 

d. Enhance Client Experience 

In the industry, client trust is built not just on accuracy but also on responsiveness. And as mentioned above, AI can power chatbots and personalized dashboards to give clients instant answers to common questions from invoice status to tax deadlines — without them waiting for an email reply. 

Integrating this within your processes not only boost client satisfaction but also frees your team to focus on complex, high value client interactions. 

Example tools: 

• AI chatbots that can instantly answer FAQs 

• Personalized investment or financial health reports generated in minutes 

Challenges and Risks of Using AI in Finance 

While the benefits of AI are hard to ignore, it’s just as important to be aware of the challenges that come with it.  

Below are some of the drawbacks that you should be aware of:  

1. Resistance to Change 

Even the best AI system won’t work if your team refuses to embrace it. Some employees are skeptical or even fear that AI could replace their jobs, which can slow down adoption. 

Overcoming this resistance takes clear communication, proper training, and involving staff in the implementation process so they see AI as a tool that supports, not threatens, their roles.  

Afterall, you can only see the real value of this technology if human judgment, creativity, and collaboration are still present  within your processes. 

2. Sensitive Data Exposure

As the finance and accounting industry deals with numbers and highly confidential information, the stakes are high when it comes to security. AI systems process vast amounts of sensitive data, making them a prime target for cyber threats.  

A single vulnerability, whether in data storage, transmission, or processing, can lead to costly breaches and reputational damage. To prevent this, organizations should invest in stronger cybersecurity measures, regular system updates, and strict access controls. 

3. Complacency and Over-reliance on AI 

While it’s true that AI can automate many processes and even make predictions, it doesn’t replace human intuition or ethical judgment. Relying on AI without critical oversight can lead to blind spots, errors, or even poor decisions if the data is incomplete or biased.  

This is why you need to emphasize within your organization or team that there must be balance — AI should handle the heavy lifting, but humans should remain responsible for strategic thinking, ethical considerations, and final decisions. 

AI Use Cases in Finance and Accounting 

Understanding AI’s benefits and potential challenges is only half the story. The real value lies in how it’s being used to work smarter, faster, and more accurately in the finance and accounting industry. 

Here are some of the most impactful use cases of AI today: 

a. Text Summarization

One use of AI is that it allows you to quickly summarize lengthy documents, reports, or industry updates. For finance professionals, this is a lifesaver especially when you’re juggling numbers, contracts, compliance papers, and market reports.  

Instead of reading everything line by line, AI pulls out the most important points so you can spend more time analyzing and less time on reading it. 

b. Document Q&A 

Another handy use is that AI can be an assistant with your document. Instead of flipping through spreadsheets or scrolling through contracts, you can just ask or chat AI in plain language — something like: 

“What’s the late payment policy for Client X?” 

In seconds, it finds the answer straight from your files. That means no more digging through multiple folders, switching between tabs, or risking an important detail getting missed. 

A popular tool for this is Google’s NotebookLM, designed as a personalized AI research assistant. It can help you analyze and synthesize information from multiple sources like documents, websites, and even YouTube videos. 

c. Data Analysis 

AI tools, like ChatGPT’s Advanced Data Analysis, can help finance teams go beyond basic spreadsheet functions—from exploring datasets to building financial forecasts and even running complex statistical models.  

This means accountants and analysts can focus more on interpreting results and making strategic recommendations, instead of spending hours cleaning and crunching numbers. 

d. Report Generation 

AI can also help produce reports in minutes. Whether it’s a monthly client summary or an internal performance review, you can get a clear, well-structured draft almost instantly — and still keep your preferred tone and formatting. 

e. Professional Development 

Another good thing about Artificial Intelligence is that this tool isn't just for client work, but it can also help you grow professionally and be a personal learning companion. 

From building custom study plans for new regulations to generating practice quizzes on tax laws, AI can help finance professionals continuously upskill.  

Having this kind of interactive learning makes professional development more engaging and accessible, especially for busy accountants juggling deadlines. 

The Bottom Line

Artificial Intelligence is a practical tool that’s changing the way finance and accounting professionals work every day. That’s why firms shouldn’t resist change but instead embrace AI as a way to boost efficiency, reduce errors, and free up their teams to focus on higher-value work. 

In Need of Someone to Integrate AI into Your Accounting Needs? 

D&V Philippines can help! As a trusted finance and accounting outsourcing company with extensive experience and top-notch services, we’re ready to guide you on your accounting automation journey. 

Schedule a free consultation with us today to learn how we can support your AI integration and transform your business operations. 

You can also visit our website to learn more about how we can help you or you may also download our Business Analytics whitepaper to learn more information on how you can leverage data to drive your business forward.