Agentic AI, also known as autonomous AI, represents a paradigm shift in finance and accounting. By combining autonomy, adaptability, and learning capabilities, agentic AI redefines how organizations manage their financial operations. Unlike traditional automation, which merely executes preprogrammed tasks, agentic AI acts independently to analyze, decide, and implement processes with remarkable precision and efficiency. This transformation is not just about improving operational efficiency; it’s about empowering finance professionals to step into strategic roles, unlocking new possibilities for business growth and innovation.
For decades, finance teams have been weighed down by labor-intensive, repetitive tasks such as data collection, reconciliations, and compliance monitoring. These activities, while essential, often leave little time for forward-thinking initiatives. The advent of agentic AI is changing this narrative, liberating professionals from the drudgery of routine processes and providing real-time actionable insights. This shift allows finance professionals to redirect their energy toward high-value tasks. It sparks innovation and growth in the industry, relieving them from the burden of mundane tasks and exciting them about new possibilities.
A 2023 report from Deloitte found that organizations adopting agentic AI in finance achieved a 30% reduction in close cycle times and a remarkable 40% improvement in forecasting accuracy. This striking potential highlights why agentic AI is no longer optional but essential for staying competitive in today’s financial landscape.
Agentic AI
Agentic artificial intelligence systems are designed to exhibit a high degree of autonomy and goal-directed behavior. Unlike traditional AI systems that operate based on predefined instructions or are purely reactive, agentic AI systems can actively pursue objectives, make decisions, and adapt to new environments with minimal human intervention. The term “agentic” derives from the concept of an “agent,” implying the system has a degree of self-direction and purposeful action.
Agentic AI holds promise for transforming industries by enabling more intelligent, autonomous, and efficient systems. However, its development and deployment require careful consideration of ethical, societal, and technical implications.
The Rise of Agentic AI in Finance
Agentic AI has already moved from theory to practice. Organizations across industries are implementing AI solutions to transform their financial operations. Companies like OpenAI, Sage Intacct, Vic.ai, Aera Technology, and UiPath, and Morgan Stanley are examples of AI driving this revolution.
OpenAI employs ChatGPT to automate accounts payable and investor relations while unifying data from disparate sources. This reduces the close cycle, enhances reporting accuracy, and enables the finance team to focus on strategic decision-making.
A leader in cloud-based financial management, Sage Intacct uses AI to improve budgeting, forecasting, and financial reporting. Automating routine processes enables CFOs to make data-driven decisions with incredible speed and confidence. Companies using Sage Intacct report reductions in financial close cycles by up to 50% and significant increases in forecasting accuracy.
Specializing in automating accounts payable workflows, Vic.ai leverages machine learning to enhance invoice processing, anomaly detection, and payment approvals. Its ability to learn and adapt allows businesses to streamline operations, reduce errors, and optimize cash flow.
Aera’s Decision Cloud platform automates complex decision-making processes, enabling organizations to optimize financial operations and enhance strategic planning.
Known for its robotic process automation (RPA), UiPath integrates AI to handle compliance tasks, reconcile accounts, and improve payroll workflows. These systems reduce human error and increase efficiency, especially in complex, repetitive tasks.
Morgan Stanley has integrated AI to streamline its knowledge base, allowing wealth managers to spend less time on administrative tasks and more time on building client relationships.
These real-world tools and implementations highlight agentic AI’s potential to automate and elevate the finance function. By reducing time spent on repetitive tasks, finance teams are empowered to focus on value-added activities, driving innovation and growth.
Potential Applications of Agentic AI in Finance and Accounting
The practical applications of agentic AI in finance and accounting span various critical processes. By combining autonomy, adaptability, and continuous learning, agentic AI can elevate finance from a traditionally operational role to a strategic insights and value creation driver.
Characteristics of Agentic AI
Autonomy
Operates independently within a defined scope, making decisions without constant human oversight.
Goal-oriented
Pursues specific objectives, often with the ability to prioritize tasks and strategies.
Adaptability
Learns and evolves from its environment, feedback, or experiences, improving its performance.
Context Awareness
Understands and reacts to its surroundings or situational context to optimize outcomes.
Action-Oriented
Executes plans and takes actions to achieve its goals, often integrating sensing, thinking, and acting capabilities.
01
Financial Planning and Reporting
Agentic AI can autonomously analyze historical financial data, market trends, and economic indicators to produce accurate forecasts and dynamic financial plans. Unlike static models, these systems adapt to new information in real-time, recalibrating strategies as conditions evolve. For example, in an economic downturn, AI systems could assess the impact of reduced revenues and propose alternative cost-saving measures or revenue-generating initiatives, enabling organizations to remain agile in volatile markets.
02
Automated Transaction Processing
Transaction processing is one of the most time-consuming tasks in finance, often requiring manual reconciliation across disparate systems. Tools like Sage Intacct and Vic.ai can autonomously process large volumes of transactions, ensuring compliance with financial regulations and internal policies. Aera’s platform automates transaction processing, ensuring compliance and improving efficiency in financial workflows. By learning from errors or anomalies, these AI agents improve accuracy over time, creating a self-optimizing system that eliminates inefficiencies and reduces the burden on human teams.
03
Fraud Detection and Risk Management
Fraud detection and risk management are critical to maintaining financial integrity. Agentic AI systems excel in monitoring real-time financial activities, identifying anomalies, and flagging potential fraud. For instance, BlackLine’s AI tools can detect unusual transaction patterns that deviate from normal behavior. In some cases, agentic AI could act autonomously by temporarily halting suspicious activities or escalating them for further investigation, reducing the risk of financial losses.
04
Regulatory Compliance and Reporting
Keeping up with evolving financial regulations is a complex and resource-intensive task. UiPath’s AI tools autonomously ensure compliance by monitoring processes and generating accurate reports. These systems reduce the burden of audits by cross-referencing transactions with regulatory requirements in real-time. They can also adapt to new compliance rules as they emerge, minimizing the risk of penalties while ensuring transparency.
05
Payroll and Tax Automation
Accurate payroll processing and tax compliance across jurisdictions are complex yet essential functions for any organization. AI systems like Sage Intacct and UiPath automate payroll calculations, ensuring compliance with varying tax laws. Additionally, they can identify tax-saving opportunities and autonomously resolve discrepancies with tax authorities, saving organizations time and resources.
06
Strategic Financial Decision-Making
Agentic AI enhances decision-making in treasury management, cost optimization, and investments. AI agents can propose or execute trades aligned with the organization’s strategic objectives by evaluating market conditions and analyzing risks. For example, AI systems could dynamically adjust investment strategies during volatile markets to ensure timely, data-driven decisions. Aera’s AI-driven solutions provide real-time insights, support strategic financial decisions, and foster agility in dynamic markets.
07
Internal Audits
AI agents can autonomously conduct internal audits by cross-referencing records, identifying potential risks, and flagging discrepancies. Over time, systems like BlackLine improve their methods through machine learning, enhancing accuracy and efficiency in future evaluations.
The Future of Finance and Accounting
The finance and accounting functions of the future are built on real-time insights, proactive decision-making, and seamless data integration. Traditional models that rely on retrospective analysis are replaced by dynamic systems capable of forecasting and scenario planning. AI-powered platforms unify data across systems, creating dashboards that offer actionable insights at a glance. These tools anticipate risks and uncover opportunities, enabling businesses to allocate resources more effectively.
Take compliance and risk management as an example. Historically, ensuring compliance with regulatory requirements involved labor-intensive processes such as manual checks, updates, and audits. Today, agentic AI tools monitor regulatory changes in real time and update compliance frameworks automatically. These systems flag potential risks and anomalies, allowing organizations to take corrective action before problems escalate. This proactive approach reduces penalties and enhances an organization’s reputation for governance and accountability.
Similarly, forecasting and scenario planning are being revolutionized by AI. Tools like OpenAI’s generative AI enable CFOs to simulate various economic conditions and assess their potential impact on the organization. For example, during a revenue downturn, AI can quickly analyze cash flow implications and recommend cost-saving measures. This capability empowers finance teams to navigate uncertainty with greater confidence and agility.
Implications for the Workforce
Integrating agentic AI into finance and accounting tasks has profound implications for the workforce. While automation creates opportunities for efficiency, it also raises concerns about job displacement, particularly in transactional roles. According to Deloitte, up to 50% of transactional finance positions could be impacted within the next decade. A 2023 PwC study (as updated) found that 45% of finance professionals believe their roles will shift to advisory functions by 2025, emphasizing the need for strategic thinking and AI oversight skills. Roles such as data entry clerks and junior accountants are most vulnerable to automation.
Many prominent organizations have offshored their financial functions to reduce costs, but adopting agentic AI will likely accelerate workforce reductions in these overseas operations. At Gryphon Citadel, we have coined the term “unshoring” to refer to this trend. This term highlights AI’s ability to automate repetitive tasks within the organization, thereby reducing the need for external labor overseas. Functions such as payroll processing, reconciliations, and compliance reporting – typically handled by offshore personnel – are now efficiently managed by AI systems. This shift offers both cost savings and improved oversight.
However, this transformation also creates growth opportunities. As repetitive tasks are automated, the demand for skills in data analysis, AI oversight, and strategic planning is growing. Finance professionals are transitioning into advisory roles, using AI-generated insights to guide business decisions and identify growth opportunities. For example, an employee who previously spent hours reconciling accounts can now analyze AI-driven forecasts to optimize resource allocation. This shift in roles and responsibilities presents an exciting future for finance professionals, filled with new opportunities for growth and development.
As automation continues to transform finance and accounting functions, organizations must invest in reskilling and upskilling initiatives. These programs, focused on data analytics, strategic thinking, and AI management, are crucial for helping employees adapt to the finance function’s new demands. Real-world examples include UiPath’s training resources for robotic process automation and Sage Intacct’s partnerships with educational institutions to equip graduates with AI-ready skills.
The transition to an AI-integrated workforce is expected to unfold in phases. Over the next one to three years, AI tools will primarily augment human roles, improving efficiency and reducing errors. By three to five years, automation will replace most routine tasks, significantly reshaping workforce composition. Beyond five years, finance teams will primarily consist of strategic and analytical roles, requiring advanced expertise in decision-making and cross-functional collaboration.
Addressing Ethical and Operational Challenges
Adopting agentic AI also presents ethical and operational challenges that must be addressed to ensure its responsible use. Transparency is critical, as organizations need to ensure that AI-driven decisions are explainable and accountable. AI systems risk perpetuating biases or making decisions that lack context or alignment with organizational values without proper oversight.
To address these challenges, businesses should establish governance frameworks that outline ethical guidelines for AI use. Regular audits can help identify and mitigate biases, while stakeholder engagement ensures that AI systems align with broader organizational goals. Additionally, organizations must foster a culture of transparency, where employees and customers understand how AI is used and its potential implications.
Integrating AI with legacy and ERP systems can be complex from an operational perspective. A phased implementation approach and employee training ensures that disruptions are minimized and systems are adopted smoothly.
Challenges with Agentic AI
Ethics and Accountability
Determining responsibility for the decisions and actions taken by the AI.
Control and Safety
Ensuring agentic AI operates within safe and ethical boundaries.
Complexity
Building systems that balance autonomy with transparency and user trust.
The Path Ahead
Agentic AI offers a dual reality – while it presents challenges such as workforce displacement and ethical dilemmas, it also creates opportunities for unprecedented efficiency and innovation. Organizations that embrace AI thoughtfully will unlock their full potential, transforming their finance functions into strategic powerhouses. The finance and accounting functions of the future will not only adapt but thrive, setting new standards for agility, foresight, and innovation.
Embracing the AI Revolution
Agentic AI is reshaping finance and accounting in once unimaginable ways. By automating routine tasks, providing real-time insights, and enabling strategic decision-making, this technology is redefining what it means to manage financial operations. However, realizing its full potential requires more than just adopting new tools. Organizations must invest in workforce development, address ethical concerns, and create a culture that embraces innovation.
The question is no longer whether to adopt agentic AI – it is how to do so in a way that maximizes its benefits for businesses, employees, and society. Companies that take this step will conquer the complexities of the AI revolution and emerge as leaders in shaping the future of finance and accounting.
For additional information:
Organizations are increasingly adopting agentic AI to enhance their finance and accounting functions. This technology automates complex processes, improves decision-making, and provides real-time financial insights. Several software providers offer solutions that incorporate agentic AI capabilities.
- Aera Technology – Aera Technology uses agentic AI to automate complex decision-making processes, including resource allocation, financial forecasting, and operational optimization. Its platform integrates with existing systems, providing real-time insights and actionable recommendations to enhance strategic financial planning and operational efficiency.
- BlackLine– Develops cloud-based services designed to automate and control the entire financial close process, enhancing financial controls and ensuring accurate closings.
- Emblematic AI – Specializes in agentic automation for finance, offering AI-driven tools that entirely automate bookkeeping processes, including transaction categorization, reconciliations, and compliance with IFRS/GAAP standards.
- FloQast – Provides close management software for corporate accounting departments, utilizing AI to assist with financial close processes and automate reconciliations.
- Intuit– Known for products like QuickBooks, Intuit is exploring agentic AI to manage complex business workflows across tax, accounting, marketing, and personal finance domains.
- Microsoft – Expanding its finance automation portfolio with AI agents that automate and orchestrate complex, long-running business processes, reducing the need for human intervention.
- Sage Intacct – Offers cloud-based financial management services, including accounting applications that enable business payments, manage bills, and facilitate payroll functions.
- UiPath – Provides software to automate repetitive digital tasks, combining AI computer vision with APIs to streamline accounting and human resources processes.
- Vic.ai – Offers AI-powered accounting tools that automate accounts payable processes, leveraging machine learning to streamline various finance tasks.
These providers are at the forefront of integrating agentic AI into finance and accounting, offering solutions that automate routine tasks, enhance accuracy, and provide valuable insights for strategic decision-making.
About Gryphon Citadel
Gryphon Citadel is a management consulting firm located in Philadelphia, PA. Our team provides valuable advice to clients across various industries. We help businesses adapt and thrive by delivering innovation and tangible results. Our services include assisting clients in developing and implementing business strategies, digital and organizational transformations, performance improvement, supply chain and manufacturing operations, workforce development, planning and control, and information technology.
At Gryphon Citadel, we understand that every client has unique needs. We tailor our approach and services to help them unlock their full potential and achieve their business objectives in the rapidly evolving market. We are committed to making a positive impact not only on our clients but also on our people and the broader community.
Our team collaborates closely with clients to develop and execute strategies that yield tangible results, ensuring they thrive amid complex business challenges. If you’re looking for a consulting partner to guide you through your business hurdles and drive success, Gryphon Citadel is here to support you.
