Sovos recently hosted a roundtable discussion to better understand how finance teams within the software industry can utilize artificial intelligence (AI). Experts from Brex, AvidXchange and Zuora joined Sovos’ Tim Roden, solutions principal, to converse on how AI and automation can be implemented for a modern – and compliant – approach to financial reporting.
Here are key takeaways from the discussion.
Using AI to create flexible solutions and delightful experiences
AI is a buzzword that’s often used to talk about how to make internal processes more efficient. But companies can also leverage AI for more creative and flexible solutions for their customers. A recent Sovos study on the software space found that many organizations are expanding geographically and leveraging different channels, such as marketplaces and apps, to get their products and services out in front of new audiences.
AI can make processes more efficient, but also offer AI services in monetized products and create a differentiated customer experience. David Tareen from AvidxChange suggested breaking AI down into its constituents and being specific about which technology to use. Hirav Gandhi from Brex explained that AI should be used to create delightful experiences for employees and admins. Companies should start by looking for the right partner for their AI initiatives and focus on creating flexible workflows.
AI-powered automation to improve sales tax compliance and spend management
As companies continue to evolve their product-led growth strategies, they are challenged to reduce manual and mundane tasks while still maintaining compliance. Sales tax compliance is one area that is ripe for automation and AI implementation, as the processes remain the same month-over-month. AI can help organizations to monitor their tax obligation and flag discrepancies, as well as validate sales tax from suppliers and determine the appropriate tax rate.
On the purchasing side, AI can be leveraged to make intelligent decisions based on who is entering the invoice. In the case of spend management, optical character recognition (OCR) and natural language processing can help to reduce the need for manual data entry. AI assistance can also help employees better understand their spending policies and aid managers in detecting anomalous spending.
Finally, AI can help controllers suggest classifications for transactions, and in some cases, achieve 99.8% automation in the close experience, explained Brex’s Gandhi. AI can help organizations to do more with less, while saving time and reducing stress for those involved.
Maximizing automation benefits to reduce mundane tasks
When introducing technology into processes to reduce the burden of mundane tasks, teams need to consider success factors to maximize the benefit of the software. Leaders should look at their organizations and determine where to start with low-risk projects and be further away from compliance. There are three stages to consider when rolling out these technologies:
- Algorithms making suggestions
- Algorithms offering shortcuts
- Algorithms doing the work with monitoring from experts.
Additionally, adoption is key to ensure the project is providing the most benefit to the overall organization.
Unlocking growth with automation and AI
Adopting automation and AI tools can be daunting for companies. To ensure your employees have confidence in the solution, introducing automation gradually and making sure technology adopters are educated and gain confidence with the solution is important. AI can be used to flag important items and provide greater visibility into everyday tasks. It is important to partner with companies that have robust and rich first-party data sets, and deep expertise in your industry.
Data is key, so focus on data that is unique to your organization and mix it with publicly available data. This will help you get better decisions and insights. To grow top line revenue, AI can be used to identify customers and geographies, while also helping with bottom line growth.
Embracing a future of automation
The combination of AI, automation and machine learning offers great potential for tax compliance and other fields. By leveraging these tools, businesses can automate mundane tasks and add intelligence to existing processes. It is an exciting time to embrace these advancements and reap the rewards of faster, more efficient operations.
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