What role does AI have in the world of financial services?
When it comes to many industries, the financial industry is considerably behind when it comes to adopting new technology and ideas. However, thanks to new AI technology, including financial forecasting technology, the financial sector is slowly starting to catch up with the rest of the world.
We understand that finances can be intimidating for many SMBs. Thinking about bills, revenue, projected sales, long-term goals, and even short-term goals can be quite a lot. However, thanks to new AI-driven technology and programs, financial independence is a lot closer than you think for many small businesses.
How Is AI Changing the Financial Decision Making for SMBs?
For many people, business owners included, the words ‘AI’ are enough to give pause. However, AI technology has been incorporated into many aspects of our lives, including our business lives, for years now.
Those chat programs you ask questions are AI-driven. You’re talking to a form of AI that is programmed to analyze what you’re asking, focus on the keywords, and then help you find the answer you need. All without having to email, phone, or visit a business or service provider in person.
Sure, they don’t always help, but you’d be surprised at how often they do, and they’re only getting better.
Businesses produce a massive amount of information, including financial transactions, HR information, application usage, product usage, social media data, and much more. However, how you use that data is vital to the success or failure of your business. Analyzing all of that information can be extremely costly and time-consuming. That’s where AI-based financial analysis could change your business forever.
Below are some of the ways AI technology could change the way you run your business:
1. Take Advantage of Opportunities by Analyzing Patterns
Spotting patterns and filtering through all the data your business generates can be highly time-consuming and financially draining. Not only that, but relying on employees to do it also adds additional risk.
According to ConnectPointz, the human error on data entry hovers around 1%, and that’s the best case.
By taking advantage of AI technology to analyze opportunities and trends, not only are you eliminating the risk of human error, but you’re also saving time and money and analyzing a lot more data, which will give you greater insight into what the future holds and how to take advantage of it.
2. Utilizing AI Forecasting to Execute Business Strategies and Beat Your Competition
There’s no second place in business, and being the second, third, or fourth business to release a product or service behind other businesses is going to put your business on the back foot right from the start.
Business forecasting is an essential tool for all businesses, regardless of size. It could be used to analyze financial markets, determine what product or service you plan on releasing, identify new business opportunities, and much more.
AI financial forecasting gives you an advantage over your competition and best of all, it’s available to everyone. You don’t need to be an international corporation with millions and millions of monthly revenue to utilize AI financial forecasting tools.
3. Cleaner, Better, More Accurate Data
Gathering data is excellent, but what if you’re focusing on all the wrong areas? Or the data is corrupted in some way, perhaps because of who collected it or how it was collected. Data collected by AI analyzing tools focuses on the data you need while excluding the data you don’t need.
According to a 2022 Global Data Management Report conducted by Experian, 75% of global businesses exceeded their annual objectives when utilizing better data management tools and higher-quality data.
While being connected globally in an online community is a great data source, it also adds a lot of inaccurate data to the pool. AI technology can assist businesses in filtering through the data and excluding data points based on inaccurate information.
AI can help to not only spot patterns in data but also identify and remove duplicate data.
The Rise of AI in Financial Decision-Making – Conclusion
The most important thing you can do for your business is to make more accurate, faster, and better-informed business and financial decisions and you do this based on accurate financial forecasts.
If you haven’t already put in place financial forecasting, and you don’t know where to start, then don’t panic.
Thanks to Kamino’s AI Financial Management and Prediction Engine, you can access accurate and affordable financial forecasting for your SMB.
If you’re tired of performing the role of CFO and CEO, then AI financial forecasting tools are an effective way to take some of the load off your shoulders and allow you more time to focus on growing your business.