Takeaways from BlackLine’s conference on AI transformation for finance teams

Digital transformation in finance and accounting: BlackLine’s Bottom Line conference highlighted the critical importance of digital transformation for finance and accounting (F&A) departments, emphasizing the need for organizations to become “future-ready” in an evolving technological landscape.

• The conference, held on September 11, 2024, focused on end-to-end finance and accounting processes, available technologies, and potential challenges in digital transformation.
• F&A departments have traditionally been slow to adopt new technologies due to the high stakes involved in accuracy, efficiency, compliance, and audibility.
• BlackLine, a leader in financial close, accounting, and financial reconciliation software, emphasized the importance of being “future-ready” for organizations with F&A teams.

Key components of being “future-ready”: BlackLine outlined three essential areas for organizations to focus on in their digital transformation journey.

• Digital ambition: Companies must align on needed technologies, their intended use, and how new software will improve their position.
• Culture of change: Organizations should foster a mindset that embraces change and new ways of working, encouraging experimentation and innovation.
• Selecting the right technology partners: Building a proper tech stack is crucial for ensuring efficiency, security, and adaptability, helping companies stay streamlined and competitive.

Challenges in digital transformation: Despite the potential benefits, digital transformation initiatives face significant risks and challenges, with a high failure rate.

• A McKinsey study revealed that 70% of digital transformation initiatives fail, highlighting the complexities involved in such projects.
• Lack of vision and alignment across departments and employees can lead to wasted resources and ineffective implementation.
• Cultural barriers, including employee resistance to change due to concerns about skills, fear of failure, or misalignment with management, can hinder transformation efforts.
• Organizations often struggle to adapt their processes to support new technologies, instead relying on familiar but potentially outdated methods.

The role of AI in F&A transformation: Artificial intelligence is poised to play a significant role in revolutionizing financial operations and decision-making processes.

• AI can transform real-time financial data into actionable insights, enabling F&A teams to make more informed decisions.
• Automation of repetitive accounting tasks, such as expense reporting, payroll, and reconciliations, can free up employee time for more valuable activities.
• AI features can help ensure data accuracy, regulatory compliance, and minimize risk in financial operations.

Building effective F&A tech stacks: The conference emphasized the importance of carefully selecting and implementing technology solutions to support digital transformation efforts.

• G2’s Financial Close, Accounting, and Financial Reconciliation categories offer resources for researching and comparing hundreds of products.
• Organizations can use these tools to compile the best F&A tech stack tailored to their specific strategies and existing technologies.

Looking ahead: As digital transformation continues to reshape the finance and accounting landscape, organizations must stay agile and embrace new technologies to remain competitive.

• The success of digital transformation initiatives will largely depend on organizations’ ability to overcome cultural barriers, align their vision across departments, and effectively integrate new technologies with updated processes.
• Continuous learning and adaptation will be crucial for F&A professionals as AI and other emerging technologies become increasingly prevalent in the field.
• Organizations that successfully navigate the challenges of digital transformation stand to gain significant advantages in efficiency, accuracy, and decision-making capabilities in their financial operations.