A recent episode of the Emagia AI For Finance podcast series
AI and Global Business Services: Breaking Down the Shared Service Silos
With the advent of ChatGPT and other AI technologies in 2023, businesses began to reimagine processes that were traditionally human-driven. Studies in the shared services space reveal a massive shift in the mindset of CFOs and shared services leaders—digitization is widely regarded as the path forward, according to Mark Harrison, founder and CEO of consulting firm Callisto Grand. “Every shared service center head, every CFO, believes that digitization is the way forward.” cautions that despite In a recent episode of the Emagia AI For Finance podcast series, Harrison explored the transformative role of AI in finance and shared services.
“There’s a lot of excitement in the credit space right now,” Harrison told Emagia. “Service providers are pushing technology to its full potential.”
However, Harrison he promise of AI, a significant number of technology projects fail. “The issue isn’t the tools themselves—it’s the lack of clarity on the objectives and outcomes,” he explained. Success with AI requires a clear understanding of its capabilities and how to strategically implement it to meet credit management objectives.
Although the implementation of AI technologies can come with growing pains—ranging from six months to two years—Harrison is firm in his belief that companies see returns on investment once these solutions are fully integrated.
The Need for Caution and Precision
Despite the advantages AI offers, Harrison urges professionals to exercise caution when using tools like ChatGPT. “It’s essential to remember that AI systems will produce results based on the input they receive. If your data isn’t accurate, you’ll face ‘garbage in, garbage out’ scenarios,” Harrison noted. He emphasized the opportunity to clean up data before automation is deployed, ensuring the systems work from a foundation of accuracy.
Data integrity is key, particularly in credit management. Harrison referenced an example of dunning letters being suppressed by Sales without knowledge of credit teams, leading to long-standing communication gaps. “You need to understand the intricate details of your trade to leverage AI to its fullest,” he added. Without a deep understanding of data settings and configurations, businesses risk under-utilizing AI solutions.
The Power of Predictive Analytics
One of the most transformative benefits of AI in finance is its potential to deliver powerful predictive analytics. By integrating diverse datasets—such as payment profiles, invoice disputes, and credit limits—AI can forecast potential risks or actions, such as identifying when a customer’s account will exceed credit limits within a matter of days. Harrison emphasizes that predictive analytics is the future of AI-driven financial services and that this evolution is only just beginning.
Investing in Talent
AI adoption isn’t solely about technology—it’s also about people. Harrison stresses the importance of involving as many operational personnel as possible in the early stages of AI adoption. Whether it’s monitoring credit notes, managing invoices, or optimizing payment methods, comprehensive employee engagement ensures smoother transitions.
One common mistake, Harrison points out, is companies implementing AI before addressing skill gaps through upskilling. “If you focus only on teaching people to press different buttons, you’re perpetuating silos,” Harrison warned. True success lies in upskilling employees alongside implementation, ensuring they can understand and take a holistic view of the processes.
Importantly, Harrison advises that companies already have much of the talent needed to implement AI. “You don’t need to look outside—you already have the talent. You just need to unlock its potential.”
A Bright Future for Shared Services
Harrison sees shared services poised to reach new heights with AI. He notes that, with the right strategy, the technology will “propel operations to where they should be.” As automation becomes increasingly embedded in financial processes, credit management will become even more critical to business success.
“The opportunities are vast,” Harrison concludes. “With AI, the future of credit has never been so important.”
FAQs:
What is Upskilling?
Upskilling involves enhancing an employee’s existing skills to meet new technological demands. It focuses on continuous learning—through training programs, certifications, and mentorship—to ensure employees can evolve alongside the company’s technology roadmap. By investing in upskilling, businesses empower their workforce to take full advantage of AI technologies, ensuring smoother transitions and improved performance.
Who/What is Callisto Grand?
Callisto Grand is a European-based consultancy specializing in shared services and global business operations, was founded by Harrison after his extensive experience as a credit manager at firms like PPG Industries and Norgren. His insights underscore the evolution of AI in finance.
Suggested First Steps in AI Implementation:
- Create a detailed and realistic roadmap.
- Involve as many operational team members as possible.
- Conduct comprehensive analytics.
- Integrate upskilling efforts alongside implementation.