Everyone’s talking about AI. But before finance leaders join the movement, they need targeted solutions to embed AI meaningfully along the F&A value chain. This report examines several innovative startups we see developing solutions in areas such as forecasting, cash-flow management, strategic planning, and dashboarding that speak specifically to the needs of the finance department. It underscores the potential of these innovations to enhance financial performance and cultivate a data-driven culture within finance teams.
Exhibit 1: The finance AI ecosystem features startups along the entire F&A value chain
AI-led startups aim to transform key finance and accounting processes
These startups leverage advanced AI technologies to boost accuracy, increase efficiency, and offer deeper insights. By adopting AI-driven solutions, finance leaders can more effectively predict financial trends, optimize resource allocation, streamline operations, and make more informed strategic decisions.
Here is what we are already seeing:
- Transforming finance operations with AI and optimizing cost structures:
- Order-to-Cash (O2C): YayPay and Rimilia improve collections and accounts receivable. YayPay predicts payer behavior, while Rimilia uses machine learning to manage payments and cash applications. These tools reduce manual work, speed up cash flow, and enhance financial forecasts, improving enterprises’ financial health and operational efficiency.
- Procure-to-Pay (P2P): Vic.ai and AppZen streamline invoice processing and accounts payable. Vic.ai leverages machine learning to minimize manual tasks, improving efficiency and reducing human error. AppZen automates expense audits and financial reviews, significantly cutting processing times and ensuring compliance with financial regulations. These advancements lead to cost savings, increased accuracy, and enhanced regulatory adherence, benefiting enterprises by improving overall financial operations and enabling better resource allocation.
- Record-to-Report (R2R): Stampli automates invoice management, approvals, coding, and fraud detection, resulting in more accurate financial reporting and faster closing cycles. These enhancements increase transparency, reduce the risk of errors and fraud, and improve decision-making. Enterprises benefit from a more streamlined R2R process, improving financial integrity and supporting timely, data-driven strategic planning.
- AI-driven strategic finance, risk management, and compliance:
- Financial Planning and Analysis (FP&A): Planful provides AI-driven forecasting, budgeting, and financial planning, helping enterprises make informed decisions and boost performance.
- Tax and Audit (risk management and compliance): Startups such as Blue J Tax, Auditoria.AI, DataSnipper, and Klarity automate tax calculations and streamline audits, improving efficiency, accuracy, and reliability. This reduces compliance costs and minimizes the risk of errors and penalties for enterprises.
AI for finance is not without its challenges
While AI offers significant opportunities to finance and accounting functions, enterprise leaders must navigate several challenges. Data privacy concerns, integration complexities, and the need for skilled talent are critical hurdles. Leaders must adopt a pragmatic approach, balancing innovation with risk management to realize AI’s full potential.
The Bottom Line: There’s no shortage of AI tech startups zeroing in on F&A use cases. Find the ones that best suit your tech landscape and business goals, and get going!
We’re beginning to see third-party business process service providers forging deeper partnerships with some logos in this roundup. If your F&A service provider offers joint AI solutions, this could be an opportunity to explore them or urge your provider to vet startups that could positively impact your operations.
Of course, picking technology is one of the easier parts of implementing AI in finance. As many of our studies have shown, managing skills and process changes are some of the more significant challenges you must overcome to realize long-term value.
