Many businesses collect vast amounts of data every day, but a large percentage of that data goes unused, according to research by Forrester. This means that small and medium-sized enterprises (SMEs) are missing out on valuable insights that could help them grow their businesses. However, thanks to technological advancements in the form of artificial intelligence (AI) and machine learning (ML), data can be processed faster and more accurately, resulting in more informed business decisions.
Industries such as banking and accounting are benefiting from these technologies, which can significantly improve data analytics, customer service, financial risk management, and credit decisions. Accountants can analyse vast quantities of data more accurately using AI and ML algorithms, allowing them to spend more time identifying key trends and insights that inform better decisions.
Banks can analyse a wider range of data, including customer behaviour and spending habits, to gain better insight into their creditworthiness and provide customised products that meet their needs. AI-powered algorithms can now take into account a much broader set of factors when assessing creditworthiness. This enables banks to be more accurate in their lending decisions and reduce their risk exposure, while also providing better access to credit for customers who may have previously been refused credit based on their credit score alone.
AI and ML can also improve customer service by providing assistance that takes the form of automated services that can quickly handle a large volume of customer enquiries. In addition, these technologies can reduce costs by reducing the need for human intervention. ML algorithms can help banks identify potential risks by analysing historical data and predicting future trends, thus saving time and resources by automating their risk management processes.
Products such as Pulse can connect to SMEs’ accounting software and bank accounts to provide a comprehensive view of their finances. AI-generated insight reports, interactive dashboards, and graphs highlight strengths, weaknesses, opportunities, and threats. The platform also monitors cashflow, profitability, liquidity, and solvency, identifying potential issues or risks within their finances and suggesting actions to tackle them.
In conclusion, AI and ML are transforming the way that businesses process and make use of financial data, enabling them to make more informed and better business decisions.
