AI, a slow but steady integration into the F&A function
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At the “Ledger Leaders: Perspectives from the Chief Accounting Officer” session during the Finance and Accounting for Biosciences event on September 16, panelists from clinical-stage biopharma took on the topic of the state of AI for the finance and accounting function.
The audience was polled on the question: “In which specific finance/accounting function is your organization prioritizing AI implementation?” with the top three responses:
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Accounts payable/receivable automation 40%
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Financial reporting/consolidation 14%
With “other” being the second choice in this poll, panelist Ashish Mandelia, vice president, chief accounting officer at Mersana Therapeutics, turned to the audience for their feedback. The answer was predominantly discovering AI capabilities already embedded within their existing software ecosystem, including SAP, Concur, and Microsoft Co-Pilot.
This approach, according to the discussion, allows companies to maximize their current technology investments rather than pursuing costly or untried solutions.
Another audience member said their company was leveraging MS Planner to automate month-end close and inform their review process. Not necessarily AI, but automation that provides a basis.
Yet another audience member shared how large language models (LLM) enable finance teams to review financial spreadsheets for errors, remember prompts and easily deliver the results in the next usage, and generate complex pivot tables through conversational prompts.
For companies processing high volumes of transactions, automation has transformed traditional workflows. “At Mersana, we used auto codes so approvals for invoices get paid seamlessly versus signing checks,” shared Mandelia, contrasting current efficiency with manual processes that existed earlier.
These discussions suggested that pharma finance and accounting industry is interested in specialized AI applications. One participant mentioned using “AI for medical writing to make sure all documentation meets regulatory requirements.”
Governance and risk management
Despite enthusiasm for AI’s potential, finance leaders express significant concerns about governance and security. “Make sure compliance and legal is working with you hand in hand; protection of IP is paramount,” cautioned Mandelia, who emphasized the importance of “securing the crown jewels” of company data. He noted that while tools like Microsoft Co-pilot are becoming ubiquitous, organizations must carefully control what data these systems can access.
To address these concerns, some companies have established formal oversight mechanisms. “Quarterly risk management committee meetings to discuss security risk, governance and oversight” have proven valuable, according to panelist Mallory Morales, chief accounting officer at clinical-stage biotech Immuneering, who recommended cross-functional participation to identify emerging risks.
As AI continues to evolve, the consensus among finance leaders at the event suggests a balanced approach: leveraging AI capabilities within existing systems while establishing robust governance frameworks.
For organizations beginning their AI journey in finance and accounting, the takeaway is start with existing tools, focus on specific high-value use cases, and ensure proper governance structures are in place before expanding implementation.
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