Four Burning Questions About AI in Finance and Credit – Answered

Four Burning Questions About AI in Finance and Credit – Answered

3 Min Reads

Emagia Staff

As a longtime leader in the AI-based order-to-cash solutions industry, conferences around the world ask for Emagia representatives to appear and speak about Artificial Intelligence (AI), automation, and GenAI in finance. Most recently that meant talking with a group of leaders in the B2B credit industry as part of NACM South Central’s annual “Day at the Races” event in Louisville, KY.

As part of travels to such events, Emagia has fielded more questions than ever this year as Generative AI has pushed to the forefront of business trends and curiosity. The biggest one continues to center around job security, which we recently covered on our blog that you can read now by clicking here. Aside from job security, which should not be negatively affected by Generative AI solutions like Chat GPT or Emagia’s own GiaGPT, here are the other questions finance professional have asked most during fall 2023 industry events.

1. How Can AI Improve Cash App?

The potential of AI to transform Cash Application processes is significant, if not revolutionary. Industry-best Cloud-based Cash Application software offers automation, analytics, and AI to match invoices to incoming payments and remittances that come in multiple data and document formats in multiple languages and multiple currencies.

Emagia’s AI-powered Cash Application integrates with leading banks, electronic lockboxes, leading ERP systems, and email inboxes. This intelligent solution leverages AI to work to eliminate inefficiency in your cash application process. Using the solution, you can cut down the manual efforts associated with data capture and auto-matching by over 95% and speed up cash posting directly into your ERP system. The solution resolves discrepancies on cash receipts with automated dispute resolution. It uses AI to understand customer payment trends, predict cash flows,and manage cash flow strategies for the new normal.

2. How Can AI Help Decrease DSO (Days Sales Outstanding)?

Reducing Days Sales Outstanding (DSO) is a perpetual challenge, and AI emerges as a strategic ally in this pursuit. By understanding customer payment behavior AI can assist in the prioritization of customer calls or strategies based on their existing and predicted behavior. AI can help decrease DSO by improving collections and credit management processes.

AI-powered algorithms can analyze historical data, customer behavior, industry trends, and payment patterns to predict which customers are more likely to delay payments. This enables companies to focus their collection efforts more effectively and prioritize high-risk accounts. Additionally, AI can automate communication with customers through personalized reminders and offers, encouraging prompt payments. By reducing the time it takes to receive payments, DSO is then significantly decreased.

3. Can AI Make Reliable and Consistent Decisions When Extending Credit Lines?

The short version is: yes. However, some accounts will need human intention, of course. But using the same kinds of algorithms mentioned above to analyze data on customers and industries, automated decisions can be made on virtually any credit application that falls within “normal” or “acceptable” parameters – and as credit professionals know, that is the vast majority of most applications. With sophisticated algorithms utilizing external and internal data, AI can detect when to raise or lower credit limits or put a red flag on a request.

That said: like anything, the quality of the data that is input matters. As such, it is imperative that the company’s credit application asks for all pertinent information, and that any anomalies or red or yellow flags are handled with human intervention quickly. Remember, AI is a copilot not a catch-all.

4. Do Finance- or Credit-Specific Generative AI Solutions (Like ChatGPT) Exist Yet?

As followers of Emagia’s LinkedIn page are well are, the answer is YES. On Sept. 6, Emagia launched GiaGPT, a generative AI solution in the spirit of ChatGPT but designed specifically for the needs of finance leaders who want to extract critical information from their own documents rapidly and with confidence. Just upload spreadsheets or PDFs into GiaGPT’s secure closed-cloud, and financial leaders can get answers about accounts or charts made for their own reports literally within seconds.

GiaGPT’s release marked the first ever GenAI order-to-cash solution in the world and ushered in a new era of possibilities for financial leaders. Of course, other companies have already started to develop solutions in GiaGPT’s likeness, which was expected. GiaGPT’s beta version is available to try now on Emagia’s website at no cost.

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