Rory Choudhuri, Finance Transformation Evangelist at Soldo
Artificial intelligence is accelerating change across the financial services sector. Organisations across the board are harnessing AI to scale operations, modernise outdated systems, and bolster resilience. Finance teams now have access to powerful tools that deliver real‑time insights, sharper forecasting, and enhanced advisory capabilities, tools that are empowering finance leaders to increasingly become strategic partners in value creation for the rest of their company. And yet, with the pace of change ever-increasing, this increased remit must be paired with an increased focus on governance and responsible practice.
Emerging Dangers: From Fraud to Governance Gaps
As AI becomes more capable, so too do the threats. A striking instance occurred earlier this year when someone used generative AI to produce a falsified lunch receipt that appeared authentic. Had this been submitted to an inundated finance team, it is easy to imagine it slipping through approval processes. This illustrates how generative AI can be weaponised for expense fraud – underscoring the need for robust governance and responsible adoption practices to accompany AI implementation.
Expense fraud itself is hardly new; inflated rations allegedly date back to Ancient Egypt, and modern-day exaggerations include inflated mileage claims. But advances in AI, and upticks in its adoption amongst workforces, brings a new level of realism, speed and scale. As companies shift toward decentralised expense management, and with more than three-quarters (78%) of finance leaders trusting team members with financial autonomy, finance teams must pair a culture of trust and responsibility with pragmatic and effective controls.
The Limits of Traditional Expense Protocols
Conventional expense processes still rely heavily on manual review and retrospective auditing. In a world where an AI-generated receipt can be produced and submitted in seconds, these frameworks are fast becoming outdated. Organisations relying on post‑spend review find themselves reacting, not preventing. When the time comes for periodic assessments of cash-flow and profit, finance teams can be left scratching their heads at leaked funds and awry expense claims.
To navigate this new landscape, finance teams need to be proactive rather than reactive. Deploying intelligent systems capable of detecting anomalies before reimbursement is vital. Modern spend-management platforms that analyse receipt images for signs of AI generation are a far more effective tool in flagging anomalies, and pre-approved budgeting cuts out guesswork and unsanctioned workarounds for employees.
Upgrading Financial Infrastructure for the Future
Beyond fraud detection, AI offers a strategic opportunity to reinvent the role of the CFO, allowing for greater contributions beyond the books. Forward-thinking businesses are using AI to enhance forecasting capabilities, free up time for strategising and elevate the role of finance teams into high-value advisory functions.
A Culture of Balanced Trust and Accountability
To maximise growth, adopting new technologies is essential, but fostering the right culture remains equally important. Empowering employees with autonomy over spending can boost motivation, productivity and agility, but only if paired with transparency and oversight.
Finance teams should strive to communicate clear policy, while their systems enhance visibility through automated alerts and real-time spend tracking. This holistic approach ensures that autonomy does not come at the cost of accountability.
Seizing the shift
Innovations in AI are reshaping financial operations faster than many businesses can adapt. Yet finance leaders who embrace it responsibly can transform potential liability into strategic advantage. Blending innovative tools, governance systems and a culture of trust and accountability, what is seen by many as a daunting AI driven business landscape can become a catalyst for growth.
Responsible adoption of AI offers not only protection against misuse, but opens the door to deeper insights, greater efficiency and stronger resilience. By equipping their teams with modern systems and empowering employees with transparency and control, forward-thinking finance leaders can reap the rewards of a scalable, secure foundation for the future.
