Skip to main content
Zach McKeown | Jun 12, 2024

10 Ways Companies Are Using AI in Financial Services Industry

The Financial Services industry is experiencing a revolution powered by artificial intelligence (AI) – one that’s reshaping every aspect of operations.  When navigating complexities in modern Corporate Performance Management (CPM), decision-makers and CFOs turn to AI not just as a tool but as a strategic partner.  That partner brings precision, speed, and insights to a sector that is ripe with data. AI’s influence extends from automating mundane tasks to pioneering sophisticated analytical processes, effectively transforming data into a treasure trove of strategic opportunities.

Revolutionizing Finance:  The AI in Finance Advantage

Such AI integration within the financial sphere is more than just an incremental change – it’s an evolutionary leap.  How?  AI facilitates unprecedented efficiency and disrupts traditional methods. Below, we explore 10 compelling applications demonstrating how AI already enhances the Financial Services industry, opening doors to innovation and competitive advantage.

1. Fraud Detection and Prevention

AI systems can analyze vast amounts of transaction data in real time to identify patterns and anomalies that may indicate fraudulent activity. By learning from historical fraud data, AI can predict potential fraud scenarios and alert the Finance team, thereby reducing risk and potential financial loss.

Example:  Mastercard uses an AI-based system called Decision Intelligence to analyze transactions in real time.  To prevent fraud, this system assesses the genuineness of a transaction and provides a more accurate fraud score to reduce false declines.

2. AI in Finance: Cash Flow Forecasting

AI significantly enhances cash flow forecasting by analyzing numerous factors that could affect future cash flows (e.g., market trends, seasonal effects and historical financial data).  With such enhancements, CFOs can make more informed decisions about investments, debt management and working capital requirements.

Example:  HighRadius offers AI-powered cash forecasting solutions that analyze historical data, market trends and company-specific variables to provide accurate cash flow forecasts.  With those solutions, CFOs can make informed liquidity management decisions.

3. Automated Reporting

AI tools can automatically generate routine financial reports, such as income statements, balance sheets and cash flow statements.  With automation, Finance can save considerable time and resources while ensuring accuracy and consistency in financial reporting.

Example:  OneStream is a cloud-based and AI-enhanced platform that automates financial reporting and compliance.  With the platform, Finance can streamline data collection, report generation and analysis, reducing the time and effort required to produce financial documents.

4. Credit Risk Analysis

By leveraging machine learning algorithms, companies can predict the likelihood of a borrower defaulting on a loan.  AI can analyze a borrower’s credit history, transaction patterns and social media behavior to provide a more accurate credit risk assessment.

Example:  Upstart, a lending platform, uses AI to assess the creditworthiness of loan applicants by analyzing thousands of data points, including some non-traditional ones like education.  With AI, the company can thus predict risk more accurately than traditional models.

5. Personalized Banking Services

AI enables banks and financial institutions to offer personalized financial advice and product recommendations based on customers’ transaction history, spending habits and financial goals.  Through such personalization, institutions can improve customer satisfaction and loyalty.

Example:  JPMorgan Chase’s COiN platform uses AI to analyze legal documents and extract essential data points and clauses.  With AI, JPMorgan has drastically reduced the time lawyers need to spend on these tasks from 360,000 hours a year to mere seconds.

6. Investment Management

At a fraction of the cost of traditional financial advisors, AI-powered robo-advisors are reshaping investment management by providing personalized investment advice and portfolio management.  They continuously monitor market conditions and automatically adjust investment portfolios to optimize returns.

Example:  Betterment, a robo-advisor service, uses algorithms to manage users’ investments.  With the algorithms, the service optimizes portfolios based on the risk level users are comfortable with and adjusts automatically to market changes.

7. Regulatory Compliance

AI in finance systems are being used to automate the tracking and reporting of regulatory compliance.  By continuously monitoring financial transactions and operations, AI can identify potential compliance issues and help companies avoid costly penalties.

Example:  AI platform Ayasdi offers solutions for financial institutions to enhance anti-money laundering and banking compliance processes.  To do so, the platform uses machine learning to detect patterns and anomalies that human analysts might overlook.

8. Invoice Processing

AI streamlines the invoice processing workflow by automatically extracting information from invoices, matching it to purchase orders and processing payments. This streamlining not only increases the efficiency of accounts payable processes but also reduces errors.

Example:  Kofax automates invoice processing with AI, capturing data from invoices, validating it against purchase orders and executing payment processing.  With automation, the company removes manual entry errors and accelerates the accounts payable process.

9. Predictive Analytics

Powered by AI, predictive analytics can forecast future trends and market conditions, providing CFOs and Financial Planning & Analysis (FP&A) professionals with valuable insights for strategic financial planning.  AI algorithms analyze historical data and market signals to predict stock market trends, currency fluctuations and economic shifts.

Example:  OneStream Sensible AI Services provides big data analytics that enables financial institutions to use AI for predictive analytics.  With these services, finance services companies gain insights into future market trends and improve strategic decision-making.

10. Chatbots for Customer Service

In the Finance industry, AI-powered chatbots are increasingly being used to provide instant customer service and support.  These chatbots can handle a wide range of customer queries, from account balances and transaction history to financial advice and product recommendations.

Example:  Erica by Bank of America is a voice- and chat-activated AI that assists customers with banking tasks.  With Erica, customers can check balances, send money or get financial insights based on personal shopping habits.

Embracing Artificial Intelligence in Finance Services

Each example above illustrates the transformative potential of artificial intelligence across various facets of the Finance industry.  From enhancing customer experiences with personalized services to strengthening fraud detection and streamlining regulatory compliance, AI technologies are playing a crucial role in shaping the Future of Finance.  These technologies, as they continue to evolve and mature, will bring expanding capabilities to offer even more innovative solutions to the challenges faced by the Finance industry.

Thus, the role of the CFO and the Finance team is elevated, enabling them to drive strategic business value through advanced data analytics and insights.


The integration of AI in the Financial Services industry is revolutionizing how companies manage their finances, interact with customers and make strategic decisions.  As AI technology continues to evolve, its impact on the Finance sector is expected to grow even further, offering new ways to drive efficiency, reduce costs and enhance financial performance.  The Office of the CFO, with its strategic position within companies, is at the helm of this transformation.  By leveraging artificial intelligence, Finance can better navigate the complexities of modern financial management and drive business success.

Learn More

To learn more about how organizations are managing the complexity of their financial planning and analysis by using AI, check out our whitepaper titled “Revolutionize Your Planning with Sensible ML.”  And if you’re ready to take the leap from spreadsheets or legacy EPM solutions and start your Finance Transformation with OneStream, let’s chat!

Learn More About Enterprise Finance AI

Get Started With a Personal Demo

Hundreds of organizations have made the leap from spreadsheets and legacy CPM applications to OneStream and never looked back. Join the revolution!
Demo Sign Up