Microsoft's Copilot for Finance

Microsoft has announced that it has created a "copilot for finance" and that  the copilot for finance will "transform finance with next-generation AI in Microsoft 365".

So first off, Microsoft's copilot is not going to transform finance or anything else.  The copilot for finance  may enable a transformation.  People, probably accountants, making use of Microsoft's copilot and developers working with accountants will help accountants transform finance; but that copilot is just a tool.

Contrary to popular belief, this digital transformation is less about technology and more about people applying the technology.  AI + HI = Transformation.  It is humans applying artificial intelligence that will cause a transformation, not the artificial intelligence itself.

Further, there will be no transformation of finance to Microsoft 365.  Again, Microsoft 365 is just a tool.  It is one of many tools.  What do you think Google, Apple, Oracle, and others think about transforming finance to Microsoft 365?

No one knows exactly how all this artificial intelligence "stuff" is going to turn out. There are some good clues that help one understand the trajectory though. For example, take this quote from that article:

“Finance organizations need to be utilizing generative AI to help blend structured and unstructured datasets. Copilot for Finance is a solution that aggressively targets this challenge. Microsoft continues to push the boundary of business applications by providing AI-driven solutions for common business problems. Copilot for Finance is another powerful example of this effort. Copilot for Finance has potential to help finance professionals at organizations of all sizes accelerate impact and possibly even reduce financial operation costs.”

Note the phrase "blend structured and unstructured datasets." That is spot on.  It will be a "blend" or "hybrid".  Large Language Models (LLMs), Small Language Models (SLMs), transformers and such will be PART of the solution.  But these are just tools.  It is humans figuring out how to employ these tools with effect that will provide new ways to solve the same old problems and some new problems.

There are a lot of different things that are converging.  I like Microsoft and I really like Microsoft Office including Excel.  It would be most excellent to have capabilities embedded within those types of productivity tools, and they likely will be. The Microsoft Copilot for Finance currently seems to be an Excel add in of some sort.

Changing systems is hard.  Microsoft's Copilot for Finance will likely enable new types of products to be created and even entirely new business models. Maybe it will enable the creation of new tools for accounting and auditing working papers. Version 1 of this copilot will likely work about as good as Windows 1.0. But, over time, this will get more and more real. The puzzle pieces will be better and better understood.  Accountants need to develop the skills to represent things digitally.


Some will see this as a threat.  Me, I see this more of an opportunity.  Accountants can be less of a data janitor and more of a valued analyst.

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