AI Cuts Month End Close Time by More Than 7 Days According to Study

Artificial Intelligence (AI) cuts month end close time by 5–7 days faster compared to companies not using AI. It is becoming a fundamental tool for CFOs and finance teams seeking to reduce time, enhance accuracy, and transition from transactional work to strategic leadership.

Massachusetts Institute of Technology (MIT) and Stanford University Graduate School of Business joint study found that AI cuts the month end financial close. It’s creating ripple effects across accounting and financial planning and analysis (FP&A), where finance teams that adopted AI in their accounting workflows reduced the month end close time by up to 75%.

Why This Matters for CFOs

Closing the books faster provides CFOs with real-time visibility into financial performance. This means leaders can make quicker decisions, deliver more timely reports to stakeholders, and respond to risks and opportunities with greater agility.

How AI Accelerates the Month End Close

Automating Manual Tasks

AI-powered tools excel at automating repetitive, time-consuming tasks such as:

• Account reconciliations

• Data entry and classification

• Error detection in journal entries

• Consolidating reports across subsidiaries

By removing the manual burden, AI enables accountants and FP&A professionals to focus on analysis and business partnering.

Improving Accuracy and Reducing Errors

Manual financial closes are notoriously error-prone. The study found that AI adoption improved data accuracy and reliability, reducing the risk of costly misstatements. For CFOs, this not only improves compliance but also builds trust with boards and investors.

The Broader Implications for Accounting and FP&A

Traditionally, finance teams have spent most of their time looking backward, closing the books, and explaining variances. With AI taking over routine processes, teams can redirect efforts toward forecasting, scenario modeling, and strategic planning.

Rather than replacing accountants, AI elevates their role. Professionals can focus on interpreting financial data, advising on business strategy, and identifying growth opportunities, like skills that are increasingly valuable for modern CFOs.

Challenges to AI Adoption

Change Management and Skills Gaps

Despite the benefits, many finance organizations struggle with AI adoption. The paper highlights change management and a lack of AI skills as barriers. CFOs must invest in training their teams to work alongside AI, ensuring adoption isn’t just technological but also cultural.

Data Quality and Integration

AI is only as good as the data it’s trained on. Poor data hygiene or fragmented systems can limit the effectiveness of AI. Integrating AI with ERP and FP&A platforms ensures a clean flow of data for accurate closes and forecasts.

The Future of AI in Financial Close

Real-Time Closing

The ultimate vision for AI in finance is continuous or real-time closing—where financial data is updated instantly rather than monthly. While still in its early stages, this shift could redefine financial reporting, eliminating the lag between business events and financial insights.

Strategic Advantage for CFOs

Early adopters of AI will gain a clear competitive advantage. Faster closes, more accurate reporting, and greater agility translate into smarter decision-making, positioning finance leaders as true strategic partners in their organizations.

AI is Changing the Game for CFOs

The MIT and Stanford findings prove what many CFOs are already experiencing: AI is transforming the financial close process from a manual, backward-looking function to a faster, more accurate, and strategic capability.

For finance leaders, the question is no longer if AI will play a role in accounting, but how quickly they can integrate it into their processes. Those who invest in AI now will unlock time, accuracy, and insights that position their finance teams to thrive in the digital era.