Sage, a leading provider of accounting, finance, HR and payroll technologies for SMEs, presents its vision of how AI will reshape the accounting sector by 2030 and the results of its study in collaboration with Forrester Consulting.
A new study by Forrester Consulting, commissioned by Sage and involving 2,339 SME finance executives, reveals how AI will unleash real-time intelligence, improve risk management and enhance strategic decision-making capabilities. Based on this information, Forrester has developed five predictions about what SME financial performance could look like in 2030.
"For centuries, accounting has relied on processes that provide a fixed snapshot of financial health. AI is ushering in a new era of continuous accounting, assurance and information," says Aaron Harris, Chief Technology Officer at Sage. "This transformation will enable organizations to achieve unprecedented operational efficiency, better compliance, robust risk management and more accurate financial forecasting."
Predictions
- Ethical leadership in AI will be a priority. Ethical use of AI will be non-negotiable in 2030, with more than 80% of organizations having strict ethical AI policies in place. However, companies will not only implement ethical AI policies, but will also take a leading role in ensuring the ethics of AI.
- More than 90% of SMEs globally will use AI for continuous monitoring and anomaly detection, reducing financial errors and fraud by more than 95%. This will represent a reinvention of risk management.
- The end of the month-end close. Real-time data will replace the traditional month-end close and 75% of SMEs will move to dynamic and continuous accounting. This transition will depend on the success of continuous review. As AI revolutionizes risk management, real-time reconciliations and other verification measures will become possible.
- Real-time data will drive financial decisions. More than 70% of SMEs will incorporate real-time data into financial decision making to drive growth and innovation and compete in 2030.
- Greater creation of new roles and opportunities for accountants. AI will automate routine tasks, allowing accountants to focus on strategic thinking and providing relevant business insights. This shift will enable accountants to use their expertise in new ways to drive business strategy and innovation.
"While AI will eventually be used to monitor all business activities as well as discover new opportunities or potential risks in real time, it will continue to play a supporting role in accounting, as outcomes and decisions will always depend on a human," adds Harris.
