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What Is AI and How Can It Impact Your Business?
It’s impossible to ignore the topic of artificial intelligence (AI) in the modern world. Even if you’re not using any of the generative AI tools like ChatGPT, you still encounter AI all over the place. Google searches now return an AI-generated summary at the top of the page. AI-powered algorithms drive what posts you see on social media. Many email programs offer prompts while you’re typing based on AI predictions of what you want to say next.
When we think of AI, many of us think of generative AI—the kind that generates text (like ChatGPT) or images (like Midjourney) in response to a prompt. But that isn’t the only kind of AI available. There are many types of AI, and several of them impact modern businesses. Some can be very useful, while others are new enough we’re not yet sure how they’ll impact our world.
Types of AI
AI isn’t easy to define, but Code Academy says that it typically refers “to intentionally constructed systems that actively interact with the world and are usually guided by large data models.” It’s designed to mimic human intelligence. We won’t look at all the different types of AI in today’s post, but here are a couple that are particularly relevant in the modern business world:
Generative AI
The term “generative AI” can refer to a few different types of AI programs that create (or generate) some type of content. Large language models (LLMs) are neural networks trained on large amounts of text data so they can generate text in response to a prompt. Chat GPT and Google Gemini are examples of this type of AI.
Another example is diffusion models, which are typically used to generate images or videos. These models also start with a text prompt, which they use to refine a starting image by removing “noise” until it matches the prompt. If you use an AI image or video-generating site, chances are you’ve used a diffusion model like Stable Diffusion.
Machine Learning
Machine learning is a more traditional type of artificial intelligence. Basically, it examines data and looks for patterns to improve the way the software performs tasks. You’ll find this type of AI used in programs like YouTube, which learns your preferences and suggests related videos. In finance departments, Business Process Automation (BPA) software uses machine learning technology to “learn” your company’s way of managing finances and become more useful the longer you use it.
Machine learning is also a key aspect of predictive AI, which looks at data to identify patterns and project possible outcomes. Predictive AI is used in a wide range of industries. For example, it can be used to analyze customer patterns and predict future buying behavior. In finance, you can use predictive AI models to support forecasting.
Generative AI In Business
It was late in the year 2022 that ChatGPT first became available. Since then, businesses have been slower to adopt AI than you might expect. According to a recent survey, “only 9% said they are currently using GenAI, while 8% were in an early phase of adoption” (CFO.com). Surprisingly, 38% of survey responders reported “they had no plans to ever adopt GenAI.”
These numbers come from research by Deloitte and the Institute of Management Accountants (IMA). Over 900 financial professionals around the world (including accounting analysts, CFOs, directors, and managers) responded to this survey. The results indicate that companies are not adopting AI as fast as many people predicted.
There’s a lot of uncertainty around using generative AI tools. As I saw while working at a university writing center while finishing my master’s degree, people just aren’t sure how much we should use AI to do our work for us. That’s not the main challenge that companies face, though. According to the Deloitte and IMA survey, “The top perceived challenge with implementing GenAI tools was integration with existing systems.” Other challenges included negative past experiences with AI, security issues, and data governance concerns.
Despite the low adoption of GenAI and the potential concerns, the survey also highlighted AI’s potential for business applications. When it’s working well, AI contributes to easier data analysis and more accurate predictions. It cuts down on the monotonous work for employees, freeing up their time to focus on other tasks. It can also support other technology tools, such as business process automation.
BPA and Machine Learning
Business process automation software uses technology to handle repetitive and mundane tasks. Data entry, matching POs with invoices, checking expense reports for errors, and similar tasks are necessary, but they are time-consuming for human employees. Turning these tasks over to BPA programs speeds up processing, reduces errors, and cuts costs. It also frees up employees to focus on other tasks.
Machine learning in BPA software makes this valuable technology even more useful for your company than earlier financial processing software. Intelligent automation doesn’t replace human employees, but it enhances their productivity and dramatically improves the financial processes that you choose to automate.
Machine learning allows BPA software to learn from the data it processes. Instead of simply doing a task, the software analyzes the data, learns from patterns, and makes predictions. The longer you use this type of software, the more the software learns about your financial processes and the more efficient it becomes at analysis, pattern recognition, and more.
Automating With NextProcess
When you implement new BPA software with machine learning, your software supplier will help you set up the software and customize it to your business process. NextProcess’s Software-as-a-Service (SaaS) model is highly flexible. Even when you first implement it, we’ll already have it customized to your business’s unique needs. And it just gets more and more useful the longer you use the software.
As you continue using intelligent BPA software, the decisions you make (e.g. which invoices to let it auto-process, how you reconcile exceptions, etc.) teach the software about patterns in your data. Using BPA software to do the same type of task over and over lets the machine learning AI notice patterns and learn how to better assist with those processes.
BPA software, even with machine learning, doesn’t replace the need for human data analysis, strategic thinking, and forward planning. But it does make these tasks much easier by streamlining and optimizing financial processes, collecting and managing accurate data efficiently, and giving your company complete visibility into financial processes. Using process automation enhanced by AI gives your company a distinct advantage in today’s digital business landscape.
If you’d like to learn more about how our software-as-a-service solutions with machine learning can help your business, contact us today. We’ll be happy to answer any questions you have and set up a free demo so you can see our software in action.
