Sara, a 50-year-old working professional, was in a car accident. She suffered some serious injuries and submitted a claim for permanent partial disability benefits with her insurance company. Her personal physician had already provided detailed documentation. But her insurance company requested her to attend an examination with another doctor, provided by them. This doctor, they said, is an "insurance doctor." Now, this was something new to Sara. But is it a new concept? Let us find out. Who Is an Insurance Doctor? Insurance doctors play a critical role in the insurance sector, which is quite underrated and misunderstood. Most of us assume that they actually replace the role of our treating physicians, but that is not the case. Our physicians treat us in case of any mishap, but they do not assess or evaluate our level of injury or disability. But then, who actually does it? This work is done by Insurance doctors, which, in turn, impacts or affects our insurance benefits. Th...
Financial Insights In Business Using AI:
You might be planning to take your business to new heights, introducing new product lines and exploring new markets. But do you have a clear insight into your businesses' financial health? Have you designed any process to track your cash reserves on a day-to-day basis, and keep your financial details updated, so that any sudden business decision becomes easy?
Role of AI in finance and business:
Expansion and grabbing new opportunities to reach the next level requires real-time monetary updates and financial insights, so that it is possible to assess whether any new step will get the necessary funding from the company to make it a success. Traditional methods of tracking income and expenses, cash reserves, debt and credit situation, taxes, and insurance covers, do not provide strong support. But Artificial Intelligence does. From the point of view of accuracy, automation, long-term visibility, and real-time reporting, AI can handle it all, without any decline in quality.
Let us analyze how:
- Data analysis - Instant and correct financial decision requires a clear snapshot of the monetary situation of the business. However, simply getting access to some numerical data is not the final step. The main part is an interpretation of the same. It is important to identify what those data sets mean in order to analyze the company's financial standing. AI in finance can provide that valuable insight within a very limited time by analyzing the data with expertise to bring out the hidden meaning. As an example, let us take a hypothetical company called EcoFibre Solutions, a sustainable textile brand, which has implemented the system of analysing over 1.2 million data points from purchases, scrolls, and time spent on product pages. This has helped them identify that eco-cotton t-shirts are highly popular among buyers within the age group of 25-35, living in New York and California. They reduced the analysis time from a week to 3 hours, leading to faster decision making.
- Automatic report creation - Any kind of automation ensures saving of time and cost. Use of AI in finance to automate processes and get financial insights into vendor registration and verification, tracking of income and expenses, data entry, verification of bank statements and invoices, etc, ensures that the removal of the human element will fast-track the entire process, in a customized and specialized form. If we continue with the example of EcoFibre Solutions, the company has integrated Looker Studio + GPT to create daily performance reports. The AI automatically fetches data from Google Analytics, Shopify, and social platforms, and creates a 4-page summary every morning at 8 AM, highlighting sales trends, top-performing SKUs, and predicted returns. By saving the team 15 hours/week, managers now focus on planning strategy rather than organizing spreadsheets.
- Multiple capabilities - The processing power of AI is unlimited and perpetual. Unlike, humans, the AI will not get drained out or weakened due to continuous work. Therefore, bookkeeping, accounting, or financial tasks done by humans will take time to produce a report, whereas, financial visibility from AI-generated reports will be instant and ready within minutes, providing company management the much-needed information to make immediate decisions so as not to miss out on any opportunity to the competitors. EcoFibre Solution can now handle 70% of customer queries using a chatbot, lowering resolution time by 40%. Inventory management has improved through stock-out predictions and auto-reorder systems. AI is also boosting their sales in social media by generating posts and captions that match their brand tone.
- No compromise on quality - AI-powered financial visibility comes in a synchronized manner. There is no compromise on quality. Asking employees to speed up the process of financial management and reporting will lead to a drop in accuracy levels, missing out on important data, miscalculations, or even errors due to distraction and inexperience. A business that is on its path towards growth and expansion cannot afford such things. AI can empower company management with reports that can be confidently put forward and used for planning, forecasting, and strategic decisions by maintaining quality and standards. EcoFibre’s has boosted its conversion rates and brand presence by automating financial data analysis with accuracy and using appropriate error detection system, wherever necessary.
- Keep up with the competition - Technological development is taking place at lightning speed in the industrial world and it is necessary to design operational procedures that can handle situations in real-time, quickly, and with precision. The use of AI in finance helps businesses adjust and adapt to these new rhythms in every field, including getting financial insights so that they can outpace their competitors and move ahead. The company deployed an AI-powered “Build Your Look” tool that recommends outfits based on a user's preferences and past purchases. This method of using technology has boosted repeated buying and increased in market share, which would otherwise take a substantial time.
- Easy management - Every business should inculcate the capability to be able to unleash the power of Artificial Intelligence because it not only saves time and cost and ensures reliability, but it can also detect fraud and deviations. Furthermore, the handling of budgets, taxes, and other recurring procedures in the field of finance, becomes easy to manage. Overall, AI tools are key to successfully managing competition and internal plans of action. If we go with the example, the company has undoubtedly introduced efficiency and better time management using AI, which has led to greater profit margins and the availability of more funds to scale up production.
Conclusion:
To conclude, finance is the backbone of a business. If the next level of intelligence and work-delivering capacity of AI is used in its optimum manner to achieve the maximum output to streamline the accounting and budgetary process, a company can easily emerge as a business leader by getting financial visibility and channelizing its productive resources into areas that require more attention and human intervention, without worrying about losing out on important opportunities.
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