Finance Automation Control Problem Largely Ignored
While finance automation has improved efficiency, many companies are losing control. This lack of governance amplifies existing fragmentation, risking inaccurate financial decisions.
Finance automation is widely adopted to enhance efficiency in core processes like payment approvals and invoice matching. However, a significant problem is emerging: as automation expands across regions, business units, and systems without clear enterprise-level ownership, it tends to amplify existing fragmentation and diminish control.
According to Gartner, 70% of finance functions will leverage AI for real-time decision-making on operational costs and cash flow by 2028. Organizations that establish robust governance now are best positioned to benefit from this shift.
Key challenges stem from a lack of clear ownership and standardization. When no single entity is accountable for automation's performance and risks, individual business units often create inconsistent local solutions. This can result in poor cash visibility, conflicting KPIs, and increased audit complexity.
To address this, companies should assign enterprise-level ownership, standardize critical processes like cash management, revenue recognition, and payment controls, and build real-time visibility into their automation systems. Siemens, for example, has successfully centralized and automated its treasury operations, reducing inefficiencies and improving financial oversight.