Artificial Intelligence (AI) is transforming financial planning for small businesses with tools that simplify operations, improve decision-making, and provide actionable insights. From automating expense tracking to forecasting cash flow, AI has the potential to be a game-changer for anyone working in operations or global payments at companies of all sizes.
Yet for small business owners, financial management is deeply personal, and unquestioningly trusting AI with their company’s core operations is a major risk.
Instead, experts — such as Jessica Chen Riolfi, Co-Founder and CEO of Uprise, an embedded financial advisory firm based in San Francisco — suggest that small businesses should implement AI for financial planning incrementally.
“Take one step at a time and [don’t] jump too far ahead,” she says on a recent episode of the Converge podcast, noting that some of her small business clients have become frustrated with AI in financial planning. “People will get angry at the AI and just not trust the results.”
Human vs. AI financial advisor
For small businesses, ensuring accuracy in categorization and bookkeeping is crucial to building a solid financial foundation. AI can ensure accuracy and compliance, but it should be actively managed and carefully monitored.
AI is most effective when paired with human advisors in a “human-in-the-loop” model. Financial advisors use AI to manage more clients efficiently while providing personalized guidance on decisions such as entity formation, tax planning, and cash flow management.
This approach allows AI to scale support without sacrificing the trust and expertise that small business owners rely on.
Financial AI platforms handle sensitive private data, including banking information, payroll, and taxes. It’s important to choose a platform with strong encryption, multi-factor authentication, and compliance certifications.
Human advisors also play a role in reviewing AI outputs to ensure they meet regulatory requirements, helping prevent errors in filings or audits.
Convera offers small business solutions that can help protect your cash flow — especially critical for cross-border payments — while utilizing AI for speed and valuable insights.
Learn more about the role of AI in global payments from The Payments Pulse.
Automating for financial success
Small business owners often spend countless hours managing expenses, reconciling accounts, and categorizing transactions. AI-powered tools can take on these manual, repetitive tasks with speed and accuracy, such as automatically categorizing transactions and flagging unusual spending, to free up time to focus on growing the business.
AI offers small businesses the ability to streamline operations, gain insights, and make informed decisions.
Additionally, AI can help predict future cash inflows and outflows by analyzing historical data, enabling small business owners to plan for payroll, inventory purchases, and other critical expenditures. Small business owners often need guidance in areas beyond transactions, such as retirement planning or hiring decisions, making AI-driven forecasts valuable for strategic planning.
However, AI’s true value comes when paired with human expertise, embedded into existing workflows, and applied to both personal and business finances. By combining AI-driven automation with trusted advisors, integrated platforms, and a phased approach, small business owners can build confidence and reduce seemingly endless repetition.
Fintech AI solutions for small businesses
Embedded finance integrates financial advisory services directly into the platforms that small businesses already use. This reduces friction and simplifies complex financial tasks.
On Converge, Riolfi describes Heard, a fintech platform that manages the back office for therapists and integrates AI-powered advisory tools alongside accounting, taxes, and payroll. Business owners can receive guidance and implement actions, like setting up a solo 401(k), without leaving their existing platform.
This approach not only makes advice actionable but also reduces complexity and offers tailored solutions for specific industries or verticals.
Effective financial guidance starts with understanding personal finances and layering business-specific advice on top. AI can support this integrated approach by analyzing both personal and business data, helping owners make decisions that balance their individual needs with their company’s growth goals. This holistic approach acknowledges that a small business is often its owner’s most important personal asset.
Overcoming risks of relying on AI for financial decisions
While AI can provide valuable insights, it also comes with risks.
All AI tools are only as good as the data and models behind them, and errors in data entry or flawed assumptions can lead to incorrect recommendations.
AI also lacks the contextual understanding to interpret nuances in unique business situations, which can result in decisions that are technically accurate but strategically misguided.
Small business owners should treat AI as a supplement, not a replacement, for human expertise.
“I do see a future where AI gets really good, and we’ll be developing relationships with our AI financial advisor,” Riolfi says. “But for the meantime, and especially with finances, we should be very careful about taking one step at a time and not jumping too far ahead.”
The future of AI in small business finance lies in integration across multiple financial tools. Connecting embedded payroll, lending, and advisory services allows small business owners to access a cohesive financial ecosystem. When AI, human advisors, and integrated platforms work together, managing finances becomes seamless, reducing administrative burden and enabling owners to focus on business growth.
Learn how Convera’s FX tools can help your small business budget and forecast more effectively.
