Article
Building smarter finance functions: AI adoption tips for SMEs
Is it time for your business to turn to AI?
Aug 01, 2025 · Authored by Mike Hollifield
As artificial intelligence (AI) continues to reshape business operations, small and medium-sized enterprises (SME) are increasingly exploring how to integrate it into their finance functions. At the Manchester and Liverpool Finance Leaders Networking Events Mike Hollifield, director at Baker Tilly Digital, shared grounded, practical advice from his experience helping SMEs across sectors implement (artificial intelligence) AI safely and effectively.
Q: What are the most common starting points for SMEs looking to incorporate AI into finance and operations?
A: The most common entry points are automating repetitive, rules-based tasks, such as invoice processing, cash flow forecasting and expense categorisation. These tasks are time-consuming but follow predictable patterns, making them ideal for AI-powered automation.
We usually recommend starting with areas where structured data already exists and where manual effort is high. Even small improvements can lead to measurable time or cost savings. Integration is key and tools like UiPath and Boomi that work seamlessly with existing enterprise resource planning (ERP) or finance systems can make or break a project.
UiPath is a leading global provider of robotic process automation (RPA) software, that enables organizations to automate repetitive tasks that are usually performed by humans. Learn more about Baker Tilly and UiPath here.
Q: What is your perspective on risk and governance when adopting AI in financial processes?
A: AI brings some new risks, like protecting personal data, avoiding unfair bias and making sure its results can be understood and trusted. But the basic rules for managing any technology still apply: be open about how it works, make sure it can be reviewed and stay in control.
In finance especially, AI should be used to support human decisions, not to replace human judgment entirely.
We encourage clients to frame AI adoption within their existing risk management frameworks, make sure models are auditable, decisions traceable and that there's always a human in the loop where needed. Also, involving finance and information technology (IT) leadership early in the process ensures both compliance and practicality for internal and external regulations that AI may not consider.
Mike Hollifield, Director – Digital Solutions, Baker TillyFrom an AI perspective you want to keep humans in the loop, to augment that human ability and help make those decisions for faster value. If we use (AI) in the right way, it can bring value to a new perspective.
Q: What are the common misconceptions finance directors tend to have when first exploring AI?
A: A common misconception is that AI is a plug-and-play solution that will deliver instant transformation. In reality, AI is only as effective as the data and processes it’s built on. If your finance processes are inconsistent or your data is siloed, AI won’t deliver the expected results.
Another myth is that AI equals full automation. Often, the biggest value comes from assisted intelligence, helping teams make faster, more informed decisions, not removing them from the process entirely.
Finance Directors should treat AI as a long-term capability, not a quick fix. Start small, validate value early and scale from there.
Q: Where do you see the most “low-hanging fruit” for AI in the finance function right now?
A: There are three standout areas:
- Invoice and document processing – AI tools can automate classification and data extraction, significantly reducing accounts payable/receivable overhead.
- Predictive cash flow and working capital forecasting – AI models that incorporate trends, seasonality, and external data outperform traditional spreadsheet-based approaches.
- Anomaly detection – AI can flag irregular transactions or patterns in real time, enhancing fraud detection and compliance monitoring.
These use cases are particularly accessible for SMEs, as many off-the-shelf tools can be deployed with minimal disruption, especially when integrated into existing finance or ERP systems.
AI in finance isn’t about replacing people; it’s about empowering them. With the right starting points, governance and mindset, SMEs can unlock real value from AI without overextending their resources.
Baker Tilly’s digital solutions practice
Baker Tilly’s digital solutions practice supports organisations in navigating digital change with a focus on practical outcomes. This approach blends deep industry knowledge with cutting edge technology, helping clients modernize operations, improve decision making and unlock value for their data.
Baker Tilly’s strategic alliance partner, IFS, is a global leader in ERP, asset and service management software. With an embedded AI platform, IFS.ai, IFS Cloud delivers context-driven, real-time insights by integrating machine learning, historical data and operational intelligence. For finance departments, this means smarter forecasting, faster anomaly detection and informed decision-making all within a unified system. This offers SMEs a scalable way to embed AI into finance functions without starting from scratch.
MHA, an independent United Kingdom member of Baker Tilly International, is a provider of audit, tax, consulting and advisory services across the U.K. Learn more about Baker Tilly International and MHA.
