November 12-14, 2017 Bellagio Resort & Casino, Las Vegas. Get Ready for Artificial Intelligence

Transcription

1 Get Ready for Artificial Intelligence

2 About ULVAC Technologies, Inc. Japanese-owned, semiconductor & vacuum tech equipment distributor and manufacturer Sells equipment to build MEMS sensors for IoT Many of our customers are investing in AI Website: ULVAC.com

3 Follow the Money Giant R&D spending amounts (hundreds of billions) are being invested in Artificial Intelligence (AI) China is planning the equivalent of $150 Billion to invest in AI

4 Four Industrial Revolutions November 12-14, 2017

5 Components of the 4 th Industrial Revolution How big data will grow Mobile computing Robotic Process Automation Artificial Intelligence Physical to Digital (Cyber) to Physical Smart technology Social Media Big Data for AI to analyze/learn Internet of Things (IOT) Machine to machine communication Blockchain (Crypto currency) Bitcoin

6 Artificial Intelligence is productivity tool to be used Accountants have used tools to centuries to support their roles Think of Artificial Intelligence as software automation like an Excel macro Leverage AI as you would a calculator

7 How AI terms are related November 12-14, 2017

8 When will AI affect you? Bigger, public companies with many transactions have the financial resources and the best case for ROI in regards to automating accounting tasks. There needs to be good documentation and standardization to base workflows that can translate well to automation. You may be pushed into it in the form of risk management Example: AI anti-virus will be used to defend against AI driven cyber attacks.

9 Road Map to automation that that will include AI

10 Why big data is important for AI Machines learn by exposure to data and identifying similarities. The more data that can be analyzed, the better understanding a machine can have. For example, reading a large number of employee expense reports can create patterns that AI can identify as normal. Checking per diem rates, cross referencing other employees expense reports who travelled to the same location. Each new report helps to slightly refine what the machine interprets as normal.

11 Common contributions to machine learning include: Updating your spam filter rules Telling newsfeeds (e.g. Flipboard) your preferred content Using Google maps and Google translate and recommendations based on picks

12 Supervised machine learning vs. unsupervised Supervised = Here are examples of expenses reports that can be approved and here are examples of expense reports that cannot be approved Unsupervised = Here are all the expense reports, what patterns can you find?

13 Introduction to RPA Robotic process automation (RPA) is the use of a software robot or bot that replicates the actions of a human to execute tasks across multiple computer systems. According to reputable research firm (Deloitte), a minute of work for a robot is equal to about 15 minutes of work for a human. For example, a bot could scan an invoice as a PDF document, attach and send to the customer as , save the data into an Excel spreadsheet, log into a web system, transfer the data to generate a report, then an employee to say the work is done. Robotics is predicted to automate or eliminate up to 40 percent of transactional accounting work by 2020, a 2015 Accenture report found.

14 What can automated with RPA? Document Capture Data Entry 3-Way Matching GL Coding Vendor Interactions Payments Document Review & Approvals Process Management & Controls Exception Processing And more

15 Robotic Assistants Control processes Enforce rules Automate communications Provide reminders Manage resources and escalates Preform data entry Collect and present data and documentation Ask for your expert input for review or approval

16 Invoices Purchase Requests Purchase Orders WEB Docs/ Eliminate Double Entry Key-Process Docs HCFA/EOB Orders Special Transactions Automated Data Entry

17 You can start RPA anywhere Purchasing Operations Accounts Payable Accounts Receivables Order Entry Customer Service Human Resources Compliance

18 Benefits of Accounting Automation BENEFITS BEFORE. RESULTS More Efficient Process Less Labor Fewer Mistakes $22.75 COST TO PROCESS 78% REDUCTION $5.03 COST TO PROCESS Ensure Accountability & Compliance 16.3DAYS 63% REDUCTION 6.1DAYS Rapid Implementation TIME TO PROCESS TIME TO PROCESS Satisfied Users Do More With Less 16% EARLY PAYMENT DISCOUNTS 298% INCREASE IN PAYMENTS 47% EARLY PAYMENT DISCOUNTS

19 Myths and Reality of RPA MYTH: Robotics will fix outdated or inefficient processes MYTH: All processes can be improved with RPA MYTH: Robots will replace the workforce REALITY: Process costs are reduced by 25%-40% REALITY: Significant increase in processing speed REALITY: RPA is a technology overlay, that ties together legacy fragmented systems through automation REALITY: Human workforce increases focus on results, analytics and relationships

20 Why prepare for AI? The benefits of AI are expected to outweigh the cons. AI will continue to grow in nearly all aspects of our lives. AI is a designed to be a problem solving technology that will be a disruptive innovation The world economy is expected to gain billions in GDP thorough utilizing AI Your career will be impacted by this coming change

21 How to prepare for AI? Learn the difference between what AI can do easily and what will be difficult for AI to do November 12-14, 2017 Develop new skills that will benefit from AI driven data Be vigilant to keep your data accurate Expect routine, rule-based manual tasks to be the first activities to be automated.

22 Specifics To Prepare for AI Capture a real-time flow of more and more data from a cloud-based server (feed AI with lots of data) Utilize API software to link multiple data sources (feed AI with lots of data) Improve the quality of your data with rules and standardization (link data sources with a common field and support the output of analytical data) Prepare to take on action based on the analytical data (make decisions with supporting information from AI)

23 Examples of AI related to Accounting Risk management Audits Compliance and reporting Forecasting and analytics

24 Today s Automation with an ERP System Automation through rules-based work flows by user-defined fields Automatic sub-ledger reconciliations, like AP Trade Automatic job-costing Automatic reporting FIFO inventory by purchase order for automatic proper COGS posting Application Programming Interface (API) ready for RPA integration API ready to connect to other databases to push and pull information

25 Modern ERP with software automation

26 Short Term Trends A faster month-end close through automation allows accounting and finance people more time to analyze results and offer strategic input for action to be taken. Expect continued reductions in staff dedicated to a single purposes like AP, AR, Cost and Financial Analysis. More finance and accounting people will hold a variety of different responsibilities. The world of IT gets closer everyday to accounting and finance people. Vendors are starting to introduce software solutions to our industry that include components of AI.

27 Which new skills will be important Troubleshooting ERP system problems Interpreting data and offering advice to increase positive results Finding variances in data assembled by Bots Understanding how algorithms are defined al go rithm ˈalɡəˌriT Həm/ Noun a process or set of rules to be followed in calculations or other problem-solving operations, especially by a computer. "a basic algorithm for division"

28 Preventing Your Own Obsolescence to Automation Use your authority as the owner of your business data to insure accuracy of what automation posts Stay valuable to your company as automation takes over more functionality by taking on related functions Anticipate changes and adapt your role to the new work that will be available to do Learn new skills and find gaps in your reporting process

29 Problems with forecasting AI advancement impacts Some AI initiatives will succeed, others will fail Science fiction, through popular culture, has influenced opinions on the dangerous potential of AI The further you look into the future, the less accurate forecasts will be AI is happening in many different industries simultaneously at a fast pace

30 This presentation cannot answer all your questions about AI

31 What is Financial Executives International? Financial Executives International (FEI) is the leading advocate for the views of corporate financial management. Its more than 10,000 members hold policymaking positions as chief financial officers, treasurers and controllers at companies from every major industry. FEI enhances member professional development through peer networking, career management services, conferences, research and publications. Members participate in the activities of 68 chapters in the U.S. and a chapter in Japan. FEI is located in Morristown, NJ.

32 We are a professional association whose mission is to empower senior financial executives realize success in their careers, as well as for the people and companies they lead. Our members realize this success through the collaborative and energetic community we foster, which helps them build a professional network of their peers, as well as involves them in engaging discussions, both in-person and online, that deliver pragmatic and tangible insights on business and leadership issues.

33 Unique peer-to-peer forum specifically for Finance executives Focused on resources and best practices for the office of a CFO Improve stakeholder relationships with your CEO, Board-level leadership roles Accelerate your path to other C-suite and Board-level leadership roles Get your personal life back in balance while also increasing your leadership effectiveness

34 For more information about AI, ERP, RPA other technologies, networking groups please contact me My LinkedIn:

35 Sources of Information DocuPhase RPA Visibility ERP The 4 Industrial Revolutions (by Christoph Roser ) at Financial Executives International CFO Leadership Council Vistage Presentation by EY ULVAC Technologies, Inc.