In this second article in our accounting and finance AI series we will look at how AI is changing the Office of the CFO (OFCO) and how we analyze the rapidly-evolving product marketplace.
AI’s Role in the Evolving OCFO
Firstly, it is important to understand the difference between Generative AI and what we might call “traditional” AI. Generative AI can “think” for itself and generate new original content. When presented with information, it can independently analyze data sets and make autonomous decisions. Traditional AI, by contrast, functions more like Machine Learning with predetermined actions and responses, and limited decision-making capability.
It’s also crucial to understand what Generative AI cannot yet do. While it can automate many basic and some complex accounting functions, it cannot provide the trust and accuracy that comes from experienced oversight. Interpreting financial statements, understanding business context, or applying GAAP standards remain – for now – reliant on human skill, earned through training and experience. That may change, but currently even the most sophisticated AI accounting software requires supervision.
However, in a short time, we have already seen AI transform many accounting procedures (such as accounts payable, revenue and credit management, and financial statement generation), and create a subsequent transformation in OCFO capabilities. AI has freed accounting teams to focus on supporting business decision-making with better data and analyses. Because data accumulation and processing is becoming automated, teams can spend more time analyzing information with management rather than creating it. This shift enables the OFCO to adopt a more proactive business role based on timely and accurate information.
The Accountancy AI Product Landscape
While Generative AI is still evolving, its impact has already been significant. Attivo’s role involves evaluating tools to guide clients toward optimal decisions for their specific business needs.
The accounting AI market is experiencing explosive growth, with new products launching almost weekly. This rapid development spans the entire accounting spectrum, from day-to-day transactions to financial statement production and management reporting.
Choosing the right product for your needs can therefore be challenging, with new products often lacking specific user context and needs. This unconfigured, fragmented marketplace can limit effectiveness and hinder adoption.
As John Truong, Head of Technology Innovation at Attivo, says: “Product development is moving so fast it’s almost impossible to have a standard checklist. There is no ‘one size fits all’ solution.”
Given the complexities of the current product market, Attivo takes a piece-by-piece approach to AI product assessment, recognizing that different products tackle different accounting challenges. John explains our approach to effective implementation: “We run pilot programs, focusing on features that fit client needs, essentially becoming our clients’ design partners.”
The selection process requires choosing very specific verticals rather than broad solutions. Successful adoption – and the time and cost savings it can bring – requires understanding the nuances and differences between rapidly evolving solutions.
The most successful AI accounting products are built with AI as a core component rather than a bolt-on solution. That is, they are AI Native. This approach enables deeper integration and better performance compared to traditional accounting software trying to add AI features retroactively. Each new product has distinct strengths and weaknesses, and Attivo helps clients identify where specific solutions excel.
The rapid pace of innovation means that today’s evaluation criteria may be obsolete next month, requiring continuous assessment and flexibility in recommendation strategies.
Cost savings are beginning to emerge, though products need additional maturity before they can truly replace traditional processes. Attivo is adapting its services as these products become more viable, effectively guiding clients through this transition.
The transformation from task-doers to high-value advisors represents the most significant shift in OCFO roles in decades. With careful evaluation and strategic implementation, AI offers the prospect of enhanced data delivery and analysis, deeper internal partnerships, and more robust financial foundations.
