Get Ready For Artificial Intelligence...• Automate communications • Provide reminders • Manage resources and escalates • Perform data entry • Collect and present data and

Get Ready For Artificial IntelligenceBy: Dave Sackett

Technology Evangelist blending Finance with IT Advocate of AI, RPA, Blockchain and Crypto

Dave Sackett

Follow the Money Going Into AI

Giant R&D spending amounts (hundreds of billions) are being invested into Artificial Intelligence (AI) applications, research, etc.

China alone is planning the equivalent of $150 Billion to invest in AI

Four Industrial Revolutions

Big data will grow exponentially…

Mobile computingRobotic Process Automation

Artificial IntelligenceSmart technology

Social MediaInternet of Things (IoT)

Machine to machine communicationBlock Chain (including Crypto currency)

Bitcoin3D printing

Components of the 4th Industrial Revolution (AKA Industry 4.0)

Physical to Digital (Cyber) to Physical

Big Data for AI to analyze/learn

To Do: List the items to the left your executive team understands well enough to consider whether or not to use them in your business:______________________________________________________________________________________________________________________________________________________________________________________________________________________________________Implement an education plan to get to the same under-standing on the other technologies.

Why is big data important for AI?

Machines learn by exposure to data and identifying similarities and differences.

More data = better understanding. Example: A large number of employee expense reports can create patternsthat AI can identify as “normal.” Each new report helps to slightly refine

what the machine interprets as “normal.”

How AI terms are related:

A subset of AI that includes abstruse

statistical techniques that enable machines to

improve at tasks with experience. The category includes deep learning.

The subset of machine learning composed of algorithms that permit software to train itself

to perform tasks, like speech and image recognition, by exposing multilayered neural

networks to vast amounts of data.

Any technique that enables computers to

mimic human intelligence, using logic, if-then rules, decision

trees, and machine learning (including deep

learning)

Machine Learning Artificial Intelligence

Deep Learning

Artificial Intelligence is a productivity tool

Accountants have used tools to support their roles for centuries.

Artificial Intelligence = software automation like an Excel macro.

You provide instructions and the software follows through.

Leverage AI as you would a calculator.

When will AI affect you?

Planned: Bigger, public companies with many transactions have the financial resources and the best case for ROI in regards to automating accounting tasks.

There needs to be good documentation and standardization to base workflows that can translate well to automation.

Unplanned: You may be pushed into using AI in the form of risk management.

Example: AI anti-virus will be used to defend against AI driven cyber attacks.

Assignment

Where do you expect Artificial Intelligence to have the biggest Impact on your business?

1. In terms of improving your competitiveness? _________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

2. What are the main threats you expect to encounter from AI? ____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

Use this tool to help identify where investment in AI will have the most benefit tohe CFO Suite (right click for the link): AI in Finance – Identification Worksheet

http://cfo.university/uploads/class-resources/AI_in_Finance_-_Identification_Worksheet.xlsx

Common contributions to machine learning:

Updating e• -mail spam filter rules.

Telling newsfeeds (e.g. Flipboard) your preferred content.•Using Google maps and Google translate.•

• & recommendations based on previous picks.

Alexa, Google Home, Bixby = AI assistants

Supervised vs. Unsupervised machine learning

Supervised = Here are examples of expenses reports that can be approved and here are examples of expense reports that cannot be approved.

Unsupervised = Here are all the expense reports, what patterns can you find? What things look off relative to the previous expense reports you have analyzed?

Introduction to RPA

Robotic Process Automation (RPA): the use of a software robot or “bot” that replicates the actions of a human to execute tasks across multiple computer systems.

A minute of work for a robot is equal to about 15

minutes of work for a human. - (Deloitte)

Robotics is predicted to automate or eliminate up to 40

percent of transactional accounting work by 2020. - (2015 Accenture report)

What can be automated with RPA?EXAMPLES:

Document Capture Data Entry•• 3-Way Matching

GL Coding•Vendor Interactions•Payments•Document Review & Approvals•Process Management & Controls•Exception Processing•And more• …

List Areas in Your Business that are Ripe for the Application of RPA:____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

What can Robotic Assistants do?

Control processes•Enforce rules•Automate communications•Provide reminders•Manage resources and escalates•Perform data entry•Collect and present data and documentation•Ask for your expert input for review or approval•

What can Robotic Assistants do?

EXAMPLES:

Control processes•Enforce rules•Automate communications•Provide reminders•Manage resources and escalates•Perform data entry•Collect and present data and •documentation

Ask for your expert input for review or •approval

List Areas in Your Business that are Ripe for the Application of Robotic Assistants:____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

Automated Data Entry

Invoices•Purchase Requests•Purchase Orders•WEB Docs/E• -mail

Eliminate Double Entry•Key• -Process Docs

HCFA/EOB–Orders–Special Transactions–

Automated Data Entry

EXAMPLES:

Invoices•Purchase Requests•Purchase Orders•WEB Docs/E• -mail

Eliminate Double Entry•Key• -Process Docs

HCFA/EOB–Orders–Special Transactions–

List Areas in Your Business that are Ripe of the Application of Automated Data Entry:____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

You can start RPA anywhere…

Purchasing

Accounts Payable

Accounts Receivables

Order Entry

Customer Service

Operations

ComplianceHuman Resources

You can start RPA anywhere…

Purchasing

Accounts Payable

Accounts Receivables

Order Entry

Customer Service

Operations

Compliance

Human Resources

Where is the Best Place for Your Business to Start?____________________________________________________________________________________________________________________________

Benefits of Accounting Automation

More Efficient Process Less Labor Fewer Mistakes

Ensure Accountability & Compliance

RapidImplementation

Satisfied Users Do MoreWith Less

BENEFITS

COST TO PROCESS

$22.75

TIME TO PROCESS

16.3DAYS

EARLY PAYMENT DISCOUNTS

16%

78%REDUCTION

63%REDUCTION

298%INCREASE IN

PAYMENTS

BEFORE. RESULTS

COST TO PROCESS

$5.03

TIME TO PROCESS

6.1DAYS

EARLY PAYMENT DISCOUNTS

47%

Myths and Reality of RPA

MYTH: Robotics will fix outdated or inefficient processes. REALITY: Process costs are reduced by 25%-40% and processing speed is significantly increased.

MYTH: All processes can be improved with RPA.REALITY: RPA is a technology overlay, that ties together legacy fragmented systems through automation.

MYTH: Robots will replace the workforce. REALITY: Human workforce increases focus on results, analytics and relationships.

Myths and Reality of RPA

MYTH: Robotics will fix outdated or inefficient processes. REALITY: Process costs are reduced by 25%-40% and processing speed is significantly increased.

MYTH: All processes can be improved with RPA.REALITY: RPA is a technology overlay, that ties together legacy fragmented systems through automation.

MYTH: Robots will replace the workforce. REALITY: Human workforce increases focus on results, analytics and relationships.

Use this tool to calculate the expected return on your AI Projects (right click on the link below): ROI Calculator for AI Projects

http://cfo.university/uploads/class-resources/ROI_Calculation_for_AI_Project.xlsx

Why prepare for AI?The benefits of AI are expected to outweigh the cons. AI will continue to grow in nearly

all aspects of our lives.

AI is a designed to be a • problem solving technology.

The world economy is • expected to gain billions in GDP through utilizing AI.

Your career• will be impacted by this coming change in AI and other related technologies.

How to prepare for AI?

Learn the difference between •what AI can do easily and what will be difficult for AI to do.

Develop new skills that will •benefit from AI driven data.

• Be vigilant to keep your data accurate.

• Expect routine, rule-based manual tasks to be the first activities to be automated.


Learn the difference •between what AI can do easily and what will be difficult for AI to do.

Action Plan and Timeline complete:____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________


Develop new skills that •will benefit from AI driven data.



• Be vigilant to keep your data accurate.



Expect routine, rule• -based manual tasks to be the first activities to be automated.


Specifics To Prepare for AI

Capture a real• -time flow of more and more data from a cloud-based server (feed AI with lots of data)

Utilize API software to link multiple data sources • (feed AI with lots of data)

Improve the quality of your data with rules and standardization • (link data sources with a common field and support the output of analytical data)

Prepare to take on action based on the analytical data • (make decisions with supporting information from AI)

Examples of AI related to Accounting & Finance

• Risk management

• Audits Compliance and reporting•

Forecasting and analytics•

Example using

Today’s Automation with an ERP SystemAutomation through rules -based work flows by user-defined fields

Automatic sub -ledger reconciliations , like AP Trade

Automatic job -costing

Automatic reporting

FIFO inventory by purchase order for automatic proper COGS posting

Application Programming Interface (API) ready for RPA integration

API ready to connect to other databases to push and pull information

Example of Modern ERP with software automation

Which new skills will be important?

Troubleshooting ERP system problems•Interpreting data and offering advice to increase positive results •Finding variances in data assembled by Bots•Understanding how • algorithms are defined:

al·go·rithm ˈalɡəˌriT͟Həm/ Nouna process or set of rules to be followed in calculations or other problem-

solving operations, especially by a computer. "a basic algorithm for division"

Preventing Your Own Obsolescence to Automation

• Use your authority as the owner of your business data to insure accuracy of what automation posts.

• Stay valuable to your company as automation takes over more functionality by taking on related functions.

• Anticipate changes and adapt your role to the new work that will be available to do.

• Learn new skills and find gaps in your reporting process.

Problems with forecasting AI advancement impacts

Some AI initiatives will succeed, others will fail.•

Science fiction, through popular culture, has influenced opinions •on the dangerous potential of AI.

The further you look into the future, the less accurate forecasts •will be.

AI is happening in many different industries simultaneously at a •fast pace.

Good Luck on Your AI Journey!!

Technology Evangelist blending Finance with IT Advocate of AI, RPA, Blockchain and Crypto

Senior Director of Finance and Administration•ULVAC Technologies

Cost Accounting Manager•Nova Biomedical

Corporate Controller•GI Plastek

Accounting and IT Manager •ULVAC Technologies

Dave Sackett

CFO.University is built around the Four Pillars of CFO Success – Accounting, Finance, Treasury and Leadership. These Pillars are supported with Core Competencies in a

framework that allows you to master your role as a senior financial officer.

http://cfo.university/

http://cfo.university/

Sources of Information

DocuPhase RPA https://www.docuphase.com/Visibility ERP http://www.visibility.com/The 4 Industrial Revolutions (by Christoph Roser ) at http://AllAboutLean.comhttps://www.linkedin.com/pulse/artificial-intelligence-deep-learning-trends-insights-anuj-saxenahttps://www.uipath.com/automate/robotic-process-automationhttp://www.startribune.com/robotic-software-sweeping-large-accounting-firms-and-clientshttp://www.ey.com/ Presentation by EY ULVAC Technologies, Inc. http://www.ulvac.com

https://www.docuphase.com/

http://www.visibility.com/

http://allaboutlean.com/

https://www.linkedin.com/pulse/artificial-intelligence-deep-learning-trends-insights-anuj-saxena

https://www.uipath.com/automate/robotic-process-automation

http://www.startribune.com/robotic-software-sweeping-large-accounting-firms-and-clients

http://www.ey.com/

http://www.ulvac.com/

Documents

Get Ready For Artificial Intelligence...• Automate communications • Provide reminders • Manage resources and escalates • Perform data entry • Collect and present data and