Proceedings of the 2nd World Conference on Business, Management, and Economics
Year: 2024
DOI:
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How Can Businesses Utilize Artificial Intelligence in The Financial Management System to Enhance Financial Performance?
Dzaky Imani Wahono
ABSTRACT:
This bachelor’s dissertation is an empirical investigation that explores the adoption of artificial intelligence (AI) in financial management systems to improve the financial performance of businesses. Effective financial management is important for competitiveness and achieving sustainability in an exponentially dynamic digital market environment. The study’s objectives include Evaluating whether the implementation of AI contributes to enhancing financial performance metrics and assessing if AI technology investments allow organizations to justify a reasonable return for their cost. The dissertation will focus on the impacts of different AI tools and techniques on financial ratios, such as profitability, liquidity, efficiency, and leverage. Some of these tools include Artificial Neural Networks (ANNs), Fuzzy Logic, Expert Systems (ES), Robotic Process Automation (RPA), Machine Learning (ML), and Natural Language Processing (NLP). This dissertation demonstrates how AI can automate routine tasks, reduce operational costs, and improve decisions by improving predictive analytics and real-time data processing. The dissertation also discusses specific AI software applications in the financial management system, including AI-driven ERP (Enterprise Resource Planning) software and FP&A (Financial Planning and Analysis) software, like Microsoft Dynamics 365 Finance and Oracle Fusion Cloud Financials. These applications have demonstrated AI’s potential to optimize the effectiveness of financial operations. For all the promising potential opportunities, however, this dissertation has unveiled some crucial challenges for integrating AI, such as high initial investment costs, the complexity of integration, and the potential dependency on quality data. The conclusion recommendations would indicate that the business should carefully assess the AI investment by checking the benefits that this technology could bring against the challenges it underlies. The paper, therefore, further proposes more research towards adaptive AI solutions that would provide greater benefits to businesses across industries.
keywords: AI, Financial Health, Financial Performance