71% of organisations are using AI in their finance operations
- 57% of leaders say ROI is exceeding their expectations, compared to 29% of others.
- Financial reporting is the most common usage area – but this is widening out to include treasury management, risk management and tax
- Nearly three-quarters of leaders have developed principles and guidelines on the responsible use of AI
HONG KONG SAR -
Media OutReach Newswire - 4 December 2024 - New research from KPMG International reveals the dramatic extent to which artificial intelligence (AI) is being deployed in organisations' finance operations – with compelling levels of ROI and a wide range of benefits including better data and decisions, faster insights and reporting, lower costs, and greater operational effectiveness. The KPMG report reveals that organisations are extracting the most value from machine learning, deep learning, and generative AI and report the ROI from these technologies is either meeting or exceeding expectations. The research, published in the
KPMG global AI in finance report, covered 2,900 organisations across 23 countries and built upon research conducted earlier this year across 1,800 organisations in 10 countries. A maturity framework was created to assess respondents into three AI-readiness groups: 24% of organisations qualify as Leaders, while 58% are middle ground Implementers, and 18% are Beginners. KPMG has also developed an
AI maturity benchmarking tool designed to help organisations assess their progress in the AI transformation journey.
AI deployment grows, Gen AI a key future priority 71% organisations are using AI to some degree in their financial operations. Currently, 41% of them are using AI to a moderate or large degree – and this is predicted to rise to 83% over the next three years. In just six months since the first wave of research, the spread of AI is already visible. Whereas in April 2024, 40% of organisations in the original 10 countries were using traditional AI in their finance operations to a moderate or large degree, this has increased to 45 percent. The use of Gen AI has also grown. The percentage of companies with no intention to use Gen AI has fallen from 6% to just 1% now. Gen AI has become a top priority for the future, with 95% of leaders and 39% of others expecting to selectively or widely adopt it within financial reporting in the next three years.
Adoption everywhere KPMG's research also underlines the extent to which AI is being utilised around the world. While companies in the US, Germany and Japan are well ahead in AI usage, other major economies, such as Italy and Spain, are behind. The same dichotomy is evident in emerging markets, with China and India ahead in AI usage, and Saudi Arabia and the African countries further behind.
Adam Scriven, Head of Finance Transformation, Hong Kong at KPMG China, says: "Building AI capability has become an imperative for CFOs and Finance functions in embracing the digital age. It's critical to recognise that AI is a capability, and not a technology product. We all have to start the AI journey, learn and build better capabilities. KPMG is helping clients establish the right data and systems, modelling and analytics backbone in order to harness the power of AI. KPMG is also co-creating AI solutions with clients to help build capability and go on the journey together."
Alan Yau, Audit Innovation Leader at KPMG China, says: "AI in financial reporting is transforming the industry with enhanced accuracy, efficiency, and real-time insights. As a mega trend, AI enables predictive analytics and data-driven decisions. Upskilling and retaining talent are crucial in this evolution. Organisations must prioritise continuous learning to equip their workforce with AI skills, fostering innovation and adaptability, in order to drive sustainable growth and maintain a competitive edge in the market."
AI usage opening out across finance Companies are turning to AI in every area of corporate finance. Financial reporting is the most widespread usage area, with nearly two-thirds of companies piloting or using AI for reporting, accounting and financial planning. But other areas are following suit: nearly half of companies are now piloting or using AI for treasury and risk management. This can generate better debt management, cash-flow forecasting, fraud detection, credit risk assessment, and scenario analysis in the treasury and risk management functions. Tax management, however, sits slightly further behind. Less than one-third of companies piloting or using AI in this area, although about half are in the planning stage.
Leaders moving ahead Leaders are showing the way, with more than three times as many leaders (87%) as others (27%) using AI in finance to a moderate or large degree. Leaders are moving fast and have on average developed six use cases for AI, almost double the number amongst others. Top areas for usage are research and data...
