Is automation coming for human roles in business finance management?
In the race for developing the most efficient financial management system, software providers have developed and discovered extraordinary technologies. With the introduction of Artificial Intelligence (AI) and Machine Learning (ML) powered systems, financial operations have been made to become more and more automated. Repetitive, mundane tasks that would otherwise require a significant degree of manual labor can now be done with the help of automation.
As the development of automation continues to advance, not only repetitive tasks but highly advanced operations are also being taken over by AI and ML. With this increasing and rapid development of automation, there has also been a rise in fear among professionals that automation will replace them altogether. While this fear is justified, it is not an all-encompassing truth either.
Repetitive, mundane tasks that would otherwise require a significant degree of manual labor can now be done with the help of automation.
What are the benefits of machine learning and AI in finance?
What does automation mean for finance?
In the world of finance, there are certain types of tasks that all share one common aspect — repetition. Invoice processing, manual data entry, expense reconciliation, and so on, are all tasks that require a great deal of repetitive human labor. The rise of automation in finance has been directed toward these exact tasks. With the help of advancements such as RPA (Robotic Process Automation), AI, and ML, repetitive tasks that require human labor have all been automated.
Jobs automation is “taking over”
With the rise in the use of automation in finance, the fears of finance professionals seem almost justified. It is understandable that they would expect their own job descriptions to become obsolete as code and adaptive algorithms take over their task.
As more and more companies adopt automated processes the need for human intervention has, seemingly, been significantly reduced.
Invoice processing, manual data entry, expense reconciliation, and so on, are all tasks that require a great deal of repetitive human labor.
A particularly well-quoted 2013 paper, written by two academics from oxford, claims that 47% percent of jobs (in the United States of America) are at “high risk” of being automated within the next 20 years — 54% of lost jobs will be in finance.
This is not just an American phenomenon. Indian banks have also reported certain transitions, with 7% reporting a decline in head count for two quarters in a row. This is reportedly a direct result of the introduction of automation and robots.
These jobs will typically be those that involve tasks that are easy to reproduce in a repetitive, predictive manner. The unpredictability factor, and requirement for human intervention, are being minimized with the help of machine learning and artificial intelligence.
If these numbers don’t imply that humans are being replaced and losing jobs to robots then what does? Right?
Not entirely. It might seem true to a certain extent. However, as can be argued, replacing human beings entirely with automation is easier said than done.
Read more: the role of AI in the fintech industry explained
Why human beings will never be completely replaceable
There is no machine out there that can truly outthink the world’s most advanced computer — the human brain. Investing and utilizing automated technologies is only half the battle in fighting fraud detection, cash leakage, data errors, and compliance violations.
The real solution to the financial puzzles is a combination of humans as well as automation. It is a symbiotic relationship between the two that makes for better data interpretation and stronger, more insightful outcomes.
With the help of AI and ML, finance professionals can dedicate more time to tactical tasks than conditioned ones and, therefore, improve productivity. They no longer have to do the monotonous job of extracting, organizing, and structuring the data. This part can be easily handled by automation, and it is the only part that truly needs to be taken over by automation.
There is no machine out there that can truly outthink the world’s most advanced computer — the human brain.
Here’s more: 7 fintech industry trends to watch out for in the new fiscal year
Companies can use software to automate manual tasks so that professionals can focus more on value-generating prospects. The question of complete replacement is negated because automation can only do half the job — the tedious, almost mind-numbing part of it.
A great example of this is where companies use systems like Volopay.
Volopay software is tasked with handling expense management while they (the human employees) focus on the data to make more informed decisions on cash flow and company expenditure. In this system, human managers are not being replaced. It is only the tedious part of their job that is being offloaded to a system that will only bring to their notice issues that require human decision-making and intervention.
To put it simply, human roles can never be fully taken over by automation in finance. Automation is incapable of making strategic decisions that are based on unpredictable factors such as human emotions, tendencies, and sheer wisdom gained from experience. This is because there will always be issues and irregularities that must be addressed by an agent with human decision-making powers.
Automation, therefore, does not take over the jobs but it simply aids the processes and acts as a supporting agent to human professionals.
Do you think that software like Volopay can streamline your finance processes and expense management, making it possible for your teams to pave their way to a successful future? You’re right. Book a demo today to experience it firsthand.
