The use of AI in corporate finance departments is becoming increasingly significant, as highlighted in a recent survey conducted by Wolters Kluwer.
According to FinTech Finance, the survey, which involved 181 finance leaders, revealed that a substantial 68% of CFOs believe AI is crucial for their financial operations, particularly in areas like financial reporting.
Despite the enthusiasm, the survey shows that a majority of finance teams are still in the initial stages of AI integration. Approximately 9% of the organisations surveyed have begun scaling their AI initiatives, navigating through the complexities of effectively leveraging AI to enhance operational efficiency and decision-making.
Tech giants such as Microsoft, Oracle, and Workday are leading the charge in the AI revolution, with each developing advanced tools that automate essential finance tasks and address common challenges like skill shortages and security concerns. Microsoft, for example, has integrated AI capabilities into its Dynamics 365 ERP platform, significantly boosting its utility for finance functions.
AI’s role in finance is evolving from handling routine tasks to engaging in more substantial activities. About 45% of CFOs are now deploying AI for medium-impact functions, including data visualization, which enhances analytical capabilities.
The future of generative AI looks promising, with over 98% of CFOs anticipating that it will fast-track decision-making processes within their industries over the next three years. As competition among generative AI providers intensifies, CFOs are expected to benefit from a broader range of options, which could refine their strategies for tackling financial challenges and improving risk management, particularly in fraud prevention.
Basware’s CPO, Perttu Nihti, shared insights on the growing confidence among CFOs regarding AI’s potential. He noted, “AI undoubtedly has an important role to play in the office of the CFO across areas such as fraud prevention. As proof of concept and pilot schemes deliver ROI, it’s encouraging to see confidence growing among CFOs as AI use cases in finance start to ramp up.”
Nihti also highlighted the transformative impact of AI-powered automation on finance operations, “AI-powered automation can have a transformative impact on operations within the finance team, driving efficiency in areas including invoice management and financial reporting which are traditionally time-consuming tasks. By automating repetitive tasks and streamlining workflows, AI enables CFOs and finance teams to reclaim valuable hours every week, which can be redirected towards overarching strategic focuses, such as compliance.”
Additionally, a shift in CFO attitudes towards AI was evident in a recent Gartner study, which showed a 66% increase in optimism about AI’s potential business value compared to last year. Previous research by Sage supported this finding, noting that while 86% of organizations have adopted AI, only about half are actively utilizing AI-powered tools in finance.
Jacqui Cartin, executive vice president and group financial controller at Sage, commented on the integration challenges, “While many organizations see the broad benefits of AI, integrating it into specialized functions like finance requires a more targeted approach as well as perhaps overcoming additional barriers, such as skill gaps, budget constraints, or concerns about data security,”
Copyright © 2024 RegTech Analyst
Copyright © 2018 RegTech Analyst
