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Automation and disruption in finance is real
To ease the burden of digital transformation, CFOs are rethinking and reshaping their finance teams to accommodate current and incoming technology. To accomplish this, they are dissecting which functions can be automated now and which solutions must be accounted for in the future. By doing so, finance leaders can set up their organizations for a more streamlined integration.
A McKinsey research study concluded that 42% of all finance functions can be fully automated, while 19% can still be partially automated. Some of the easiest functions to automate are:
The most difficult include:
- General accounting operations
- Cash disbursement
- Revenue management
- Financial controlling
- Risk management
- Business development
As is evident in the findings, tasks requiring higher level thinking and analysis processes require more intelligent solutions like machine learning or natural language utilities. In terms of development, if these cognitive automation tools were a human, they would still be sporting diapers. However, similar to the current robotics process technologies, they stand to have a sizable impact on finance functions in the years to come.