This document discusses how artificial intelligence (AI) can benefit accounting and finance departments. It describes AI as computer systems that work and react like humans through activities like speech recognition, learning, planning, and problem solving. The document outlines three ways accounting can benefit from AI: investing in predictable analytics, exploring tools for faster responses, and using behavioral analytics for cross-servicing. It also lists some key accounting requirements that AI can support, such as time-series data analysis, risk assessment, and regulatory compliance. Finally, the document promotes IBM solutions for close, consolidation and reporting tasks that can help automate processes and reduce cycle times.

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© 2014 IBM Corporation
AI and Office of Finance (CFO Office
Presenter: Paul Young, CPA, CGA – Proven Practice Adviser – Risk
Analytics, FOPM/FPM and Close, Consolidate and Reporting
Day: April 1, 2017

2. © 2012 IBM Corporation
Author / Bio
September 9,
2014
• Paul Young, CPA, CGA
• SME – Financial Performance Management (TM1, Cognos Controller and
Cognos Disclosure Management, OpenPages, Algorithmics, Cognos
Integrated Server, Cognos Command Center and Datawatch)
• Industry Experience
• 15+ years in Corporate Reporting, Budget & Forecasting, Costing,
Business Process Management, Internal Audit and Controls, Risk
Management, Financial Analysis, Costing
• 11+ years in financial solutions (FOPM, FPM, Risk, Office of the
Finance, Risk Management)
• 8+ years teaching Advance Finance, Advance Accounting, Public
Finance and Advance Management Information Systems
• Blogger in areas like Finance Analysis, Government policies, market
segment

3. © 2012 IBM Corporation
Agenda
September 9,
2014
• This presentation discusses AI and how it can be
leverage by finance, tax and accounting departments.

4. © 2012 IBM Corporation
What is AI (Artificial Intelligence)
September 9,
2014
Artificial intelligence (AI) is an area of computer science that
emphasizes the creation of intelligent machines that work and
react like humans. Some of the activities computers with artificial
intelligence are designed for include:
• Speech recognition
• Learning
• Planning
• Problem solving

5. © 2012 IBM Corporation
Accounting and AI
September 9,
2014
• Three ways accounting can benefit AI
• Investing in Predictable Analytics
• Explore tools that allow faster, friendlier response
• Use behavior analytics for cross-servicing.

6. © 2012 IBM Corporation
Accounting requirements from AI
September 9,
2014
• Support of Time-series data
• Exploratory
• Access to market information (industry, customers and
other trends
• Overlay of various variables (weather pattern, currency,
commodity pricing, traffic, government policies
• Assessing various types of Risk
• Tax and accounting rules
• Social media analytics
• Predictable Analytics

7. © 2012 IBM Corporation
Financial Statements (Management
Reporting and Regulatory Filings
September 9,
2014
• Analysis
• Commentary
• Accounting rules
• Notes/support
Main Pain Points for Finance
• Finance spends allot of time working with ERP systems and Microsoft Excel to
record and analyzed the data
• Automation of audit programs including triggers
• Tax Planning (R&D, dividend, rules)
• Liabilities (loans, leases, pensions, etc)
• Finance would like to test out areas of the financial statements
• Provisions
• Return on capital (capital utilization)
• Sales and Margin
• Macro and Micro indicators
• Risk Management (Supply Chain, Cybersecurity, liquidity and global trade
issues)

8. © 2012 IBM Corporation
Business Demands to close, consolidate
and report
September 9,
2014
• The APQC study, which examined close-to-disclose cycle time
for 524 companies with more than $1 billion in revenue, found
that the top 25% were able to complete the entire C-to-D
process in 12 days or less. The median cycle time was 15
days, while the bottom 25% of companies took 18 days or
longer. The worst performers needed up to 25 days to get the
job done.
Source – CFO.com – August 10, 2015

9. © 2012 IBM Corporation
Solutions
September 9,
2014
• Watson Analytics -
https://www.ibm.com/communities/analytics/wa
tson-analytics-blog/5-new-things-about-
watson-analytics-you-need-to-know/
• IBM Cognos Disclosure Management /
Reporting tool - http://www-
03.ibm.com/software/products/en/cognos-
disclosure-management
• IBM Sustainable Reporting:
https://www.ibm.com/ibm/green/sustainability_
solutions.html

10. © 2012 IBM CorporationSeptember 9,
2014
• Additional Sources
• Paul Young (email: paul.young@ca.ibm.com)
• IBM Close, Consolidating and Reporting, Risk and Planning Analytics
• http://www.ibm.com/analytics/us/en/business/financial-reporting/
• http://www-03.ibm.com/software/products/en/planning-analytics
• http://www.ibm.com/analytics/us/en/business/governance-risk-
compliance/
• Reporting Pain Points -
http://www.slideshare.net/paulyoungcga/reporting-challenges-for-
accounting-and-finance-january-2017
• Pension Reporting
• https://www.slideshare.net/paulyoungcga/pension-accounting-rules-
and-automating-solutions