There is an increasing global trend of integrating AI to simplify business processes, but is South Africa on the same wavelength? The fact of the matter is that AI is revolutionising business compliance in South Africa, regardless of the speed with which companies implement it.
According to Deloitte, tax departments dedicate over 50% of their work hours to gather and handle data. So, consider the amount of time that could be saved if tax departments had access to AI tools.
From the modernisation of tax administration through AI, to using automation technology to simplify finance processes, businesses are implementing forward-thinking methods to improve their compliance processes.
In this article, we’ll help you understand the importance of implementing AI into your compliance processes to propel your business.
Why You Need to Integrate Compliance Automation into Your Processes
Ensuring that your business is compliant can take up a lot of time and energy. Automating some of the tasks dedicated towards compliance can simplify these processes.
There are various artificial intelligence automation strategies for SMEs to use, and one of the primary reasons many businesses use compliance automation is for cost-saving. However, there are additional benefits, which include:
- Seamless revenue calculation: When you automate your revenue calculation, you no longer need to spend time manually updating your spreadsheets.
- Streamline your tax processes: Automation can help you organise the financial data you need to file your taxes, such as expense tracking. Products like Sage can make it easier to track your business expenses and income during the year, allowing you to file your tax return with ease.
- Reduced human error: AI tools help you save cost and time by reducing opportunities for human error.
- Improved risk assessment: Risk assessment is a primary aspect in the compliance process. AI cuts down the time spent on data analysis to point out possible risks in your compliance process.
AI and Its Role in Finance
Artificial intelligence has completely revolutionised the financial sector. Businesses can make use of tools with AI transaction monitoring to enhance their finance compliance processes.
AI finance tools do not only help you streamline transactions, but they even help you detect possible fraudulent activities in your business. The increase of phishing attacks has created a dangerous environment for SMEs. So, finding the best way to protect your business is essential.
The way it works is that it analyses financial transactions, and specifically looks at the patterns to spot out anything suspicious.
The AI machines designed for financial checking were made to have a deep understanding of what normal transaction patterns are to be able to detect fraud and money laundering.
AI and Its Role in Privacy Compliance
We all know how beneficial AI can be in a business, but it is also important to tread carefully, especially when dealing with people’s information. Businesses need to always have AI Privacy compliance in mind. This refers to the steps involved in ensuring that you’re using AI responsibly.
The Protection of Personal Information Act (POPIA) has regulations that guide businesses to comply with when using AI. The Protection of Personal Information Act states the following:
- You may not subject a data subject to a decision that results in legal consequences for them, which comes as a result of automated processing of personal information meant to provide a profile of a person, including their work performance, creditworthiness, reliability, location, health, personal preferences, and conduct.
The provisions of the above do not apply if:
- The decision was taken under the finalisation of a contract, and
- has been taken in connection with the conclusion or execution of a contract, and
- there have been appropriate measures taken to protect the data subject’s interests.
How to Use AI Responsibly?
To use AI responsibly, it needs human integration, but beyond that, there are a few methods to ensure you do just that. The methods include:
- Fact check to ensure that your AI tools are accurately performing the tasks you’ve allocated.
- Conduct AI training and development for your team.
- Monitor how you use AI.
- Ensure your AI tools comply with privacy and security regulations.
- Get consent whenever you’re dealing with data.
