How AI Agents Are More Than Just Traditional Automation

Accounting teams are feeling the squeeze. Do more with less. Close faster. Let’s have a random review this week. In response, many departments have turned to automation. Teams are using automation for tasks such as data entry and invoice matching. And while automation helps, it’s often a reactive solution, has limitations, and it’s no longer enough. 

What firms need in today’s landscape is a more intelligent solution, a digital teammate who does more than just automate tasks quickly. Your teammate should help with smarter task execution and work through complex workflows rather than a single task.

Enter AI agents. 

In this article, I’m going to break down why AI agents are different from traditional automation (and why you should be excited about them), how accounting departments are using them, and how your team can begin experimenting with them now.

Traditional Automation: Useful, But Limited 

Automation, in its traditional form, is useful but not without its limitations. Think of it this way: "Traditional automation got you here, but won’t get you there.” 

Traditional automation falls into a broad definition of:

• Rule-based systems
• Task-specific solutions
• Requiring human oversight

A few examples of this form of automation are ERP workflows, bank feed reconciliations, and invoice matching rules. You might have systems in place for all of these areas, and while they “work,” they also fail because:

• Exceptions cause them to break
• Scaling across interconnected tasks and systems is either difficult or not possible
• Traditional automation lacks reasoning abilities and can’t adjust to context

The result? Your team still spends valuable time monitoring, correcting, and manually filling in the gaps.

Traditional automation reduces a few steps, but it doesn’t transform processes in the way that AI agents offer.

What AI Agents Are

AI agents offer a unique form of automation that executes numerous accounting workflows and functions specific to your organization. Your organization needs change, and your agent adapts to meet the new workflows you have in place.

You can classify AI agents as being autonomous, goal-oriented digital teammates with multi-step reasoning.

Agents are built to adapt in real-time based on your intent and context, without the rigid task execution of traditional automation or reactive options that handle one task at a time. Your digital team is:

• Dynamic
• Persistent
• Collaborative

Let’s take FloQast’s AI agents for example. Accounting teams use the tools from FloQast to monitor the month-end close and compile progress summaries without prompting.

Flag blockers and follow-up triggers offer consistent results without the need for complex code. Natural language delivers the outcomes businesses require without step-by-step instructions that are rigid and fail to adapt to simple changes.

Task agents can work through checklists, reconciliation agents can match and reconcile on their own (while flagging discrepancies), and accounting departments get a much-needed reprieve from lower headcounts in the office.

AI agents are just getting started with their ability to transform accounting departments.

Why AI Agents Matter

What if you could have:

• Fewer bottlenecks?
• Greater capacity without hiring?
• Agents that never forget a deadline or follow-up?

These are just a few of the things that AI agents can do for your team. 

They can also:

• Minimize the risk of errors and costly inaccuracies
• Continually scan for fraud risks and anomalies to strengthen internal controls
• Stay on top of changing regulations and adjust accordingly to ensure compliance
• Deliver real-time data analysis, along with actionable insights

Fewer errors, optimized workflows, and enhanced compliance help lower operational costs and give your team a competitive advantage. Employees will have more time to focus on high-value tasks that drive growth, all without overburdening your team. 

Don’t Fall Into the Trap of Having a False Sense of Progress 

Many teams have a false sense of progress. They assume they’re modern because they’ve automated processes. But true progress today goes beyond basic automation.

Ask yourself:

• Are you still chasing docs manually?
• Are you constantly watching inboxes for updates?
• Are you still reconciling in spreadsheets?

If the answer is yes, your team is likely stuck in reactive workflows and missing out on the potential of what’s possible today.

AI agents do more than just help you get work done faster; they transform how the work gets done.

Where to Start

AI agents can do a lot of things. But you don’t need to overhaul your entire tech stack overnight to leverage their benefits. Start small and focus on a process your team relies on, like the month-end close.

Begin with one use case:

• Have an agent automatically compile a checklist for each entity based on historical patterns.
• Use an agent to monitor the close process and alert stakeholders when tasks are overdue.
• Have an AI agent flag discrepancies or unusual balances for human review.

These may seem like small changes, but they can make a world of difference in your team’s efficiency and agility. 

If you don’t want to start with your month-end close process, then look for repetitive workflows that could be optimized, like those that have your team:

• Manually checking off tasks
• Chasing down documents
• Constantly following up on approvals

These are ideal candidates for AI agent support.

If you’re already using a financial workflow tool or a close management solution, you’re halfway there. Adding AI agents into the mix can take your efficiency to the next level.

The Takeaway

AI agents are more than just automation; they help you tackle complex tasks and processes quicker and with greater accuracy. Although traditional automation is helpful, it’s still limited and often requires human oversight. Agents are dynamic and collaborative digital workers that help your team do more with less without compromising on accuracy or employee morale. 

Starting with one use case is a great way to get your feet wet and start exploring what AI agents can do for your department. From here, you can continue optimizing your workflows one layer at a time.

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