Artificial intelligence – The changing landscape of finance in India

Posted by: at 8/29/2016 03:18:00 am

New CIMA study shows that businesses embrace robots and automation



Key Findings:

o          India ranks third across the world and second in Asia in the implementation of finance and accounting automation

o          Two-thirds (64%) of finance professionals encourage increasing automation in India

o          Automation boosts better work-life balance, as per (50%) of the experts

o          Only (29%) professionals fear loss of jobs


Artificial intelligence – The changing landscape of finance in India


 India, 29th August 2016: Artificial intelligence has globally impacted businesses across industries. In order to understand its effects on the finance and accounting industry, Chartered Institute of Management Accountants, (CIMA) the world’s leading and largest UK based professional body, conducted a global survey across select European, African and Asian countries. The key findings of the survey ranks India amongst the top three countries in the world implementing robotic automation in their core business processes. A majority of financial leaders are of the opinion that artificial intelligence helps enhance efficiency and accuracy of the business.

This recent global study reveals that more than two-thirds (64%) of finance professionals from India encourage increasing automation as it saves time, money and helps ease the  indecision process in their organisations. At a global level, Zimbabwe tops the chart with (75%) professionals supporting automation, followed by China with a 67% of acceptance. This indicates that accountants regard the impact of new technologies as an opportunity rather than a threat.

On the other hand, only (29%) of surveyed financial professionals from India believe that increased automation will lead to a loss of jobs and lead to greater inequality. India has a second lowest percentage as compared to rest of the world. This is in stark contrast to the popular view that major job cuts will happen over the coming years as a result of automation and a rise in robotics.

The CIMA study was conducted covering more than 3,000 select influential experts from leading financial companies across the world who are also pursuing a CIMA professional qualification.

“While it’s possible to imagine a shocking scenario where advances in technology lead to mass redundancies, India’s finance departments have a less alarming view. A majority of finance professionals who are also our students believe that artificial intelligence, robots and other technologies will alter, but not destroy, the jobs of accountants and other professionals. Organisations need to examine their business models and turn innovations such as AI and automation into an opportunity and not a threat.” says, Bhaskar Ranjan Das, Head of South Asia, Chartered Institute of Management Accountants (CIMA).

In terms of analyzing effects of increased automation on businesses, CIMA Study states that in India more than (50%) of financial experts feel that better automation and data analysis enable companies to become more efficient and bring a better work-life balance amongst the workforce. However, as per global ranking, China becomes the top country with (66%) of a positive feedback. 

The study further states that despite a rising demand for automation, skilled human capital continues to hold a significant and valuable position in the organisation, which technology can never replace. Talking about an impact of artificial intelligence on strategic decision-making, only (13%) of experts in India conceded that a reliance on automation or technology has led to their organization taking the wrong decision. However, a large percentage of finance experts from India (47%) agree that it has never happened in the past. However, they suggest refraining from relying on automated processes extensively and strongly recommend to double check the work manually. In comparison to the rest of the world, a majority of experts (54%) in United Arab Emirates (U.A.E) strongly hold the same view.
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