TLDR: KPMG’s recent global study reveals a significant surge in AI adoption within finance, with 71% of companies already leveraging AI in operations and nearly all planning to do so within three years. The report underscores AI’s transformative impact on efficiency, accuracy, and strategic decision-making across accounting, risk, treasury, and tax management, while also addressing key challenges and the evolving role of auditors.
A new global report from KPMG underscores the rapid and pervasive integration of Artificial Intelligence (AI) across the finance sector. The study, which surveyed CFOs and finance executives from 2,900 companies across 23 countries and territories and six industries, reveals that AI is not just a buzzword but a fundamental shift in how financial operations are conducted worldwide.
The findings indicate that a substantial 71% of companies surveyed are currently utilizing AI within their finance operations, with 41% deploying it to a moderate or large degree. The pace of AI development and adoption is so swift that almost all companies (99%) anticipate using AI in financial reporting within the next three years. This widespread adoption is transforming various facets of finance, including accounting, financial planning, treasury management, risk management, and tax management.
Companies are reporting significant benefits from their AI investments. A striking 96% of AI leaders in finance report that AI is meeting or exceeding their return on investment (ROI) expectations. The technology is lauded for enhancing data processing, improving efficiency and accuracy, reducing human error, enabling faster and better data-driven decision-making, lowering costs, and improving regulatory compliance. Specifically, two-thirds of companies believe AI will strengthen their ability to predict trends and their impact on business, while 60% expect real-time insights into potential risks, and 57% anticipate improved data accuracy and decision-making.
Erik Renfors, from KPMG’s Finance Strategy and Transformation, emphasized the global nature of this phenomenon, stating, ‘AI is truly a global phenomenon, and it is being adopted by finance teams across the world. In addition to the benefits highlighted in our study, we also see huge potential in AI in terms of entirely rethinking service delivery models. By deploying AI, organizations can introduce entirely new services that truly bring value to business. Moreover, AI will reshape roles and responsibilities within companies and with respect to their strategic partners.’
Despite the optimism, the report also highlights challenges to AI adoption, including data security vulnerabilities, limited skills, inconsistent data, and high implementation costs. However, leading organizations are addressing these by investing in skills development and conducting value-based pilot projects before scaling their AI initiatives.
Also Read:
- Artificial Intelligence Emerges as Dominant Force for Finance Professionals, Survey Reveals
- Artificial Intelligence Adoption Surges in Australian Finance Sector, Promising Billions in Economic Growth
The role of auditors is also evolving significantly in this AI-driven landscape. Auditors are increasingly expected to review AI controls, assess governance maturity, and provide technology attestations. They are also leveraging AI in their own auditing processes to deliver more insightful and real-time outcomes. KPMG is actively bundling AI-based cutting-edge technologies on its global audit platform, KPMG Clara, to meet these increased client expectations. To further assist companies in their AI transformation journey, KPMG has developed the AI in Finance Maturity Benchmarking tool, enabling organizations to assess their progress against peers.
