Microsoft Finance Team Cuts Costs and Saves Time Using AI
Microsoft’s finance department has integrated various AI tools into its operations as part of a long-term digital transformation effort. These AI agents support processes like procurement, payment collections, and financial forecasting, significantly boosting efficiency.
Cory Hrncirik, Microsoft’s modern finance leader, shared at a recent finance conference that AI has saved the company millions of dollars and thousands of hours. The impact spans across multiple finance functions, transforming how the team works.
AI Tools Driving Efficiency
The finance team uses a combination of off-the-shelf Microsoft AI tools and custom-built agents. One standout example is a sourcing assistant that simplifies supplier sourcing, saving Microsoft an estimated $10 million annually and cutting about 15,000 hours of work each year.
Beyond cost and time savings, AI has helped Microsoft control its finance team’s headcount growth. Previously reliant on many hires working with basic tools like Excel, the team now automates and streamlines many tasks. This shift empowers finance professionals to focus on higher-value work.
Evolution of AI in Microsoft Finance
The AI journey began over a decade ago, starting with machine learning models mainly for forecasting. Use cases expanded to audit reviews and automating tasks such as invoice payments, reconciliations, and approvals.
Hrncirik highlights that the pace of AI progress has accelerated recently, especially with tools like ChatGPT making AI more accessible and easier to apply in daily finance tasks.
Cultural Shift Enables AI Adoption
This AI push was supported by cultural changes initiated by CEO Satya Nadella and CFO Amy Hood. Nadella’s emphasis on a growth mindset encouraged finance teams, traditionally risk-averse, to embrace change and improve processes.
Finance leaders at Microsoft now regularly challenge themselves to find ways to operate more efficiently and cost-effectively. While compliance and regulatory concerns require careful handling, many areas allow rapid innovation.
What Finance Professionals Can Learn
- Start small with AI in forecasting or data analysis and expand to other finance functions over time.
- Combine off-the-shelf tools with custom solutions tailored to specific needs.
- Encourage a culture that embraces change and continuous improvement.
- Focus on automating repetitive tasks to free up time for strategic work.
For those in finance looking to build similar capabilities, exploring AI training and courses can accelerate adoption. Resources like Complete AI Training’s office tools courses offer practical guidance on applying AI in finance workflows.
Your membership also unlocks:
