The use of AI in corporate finance is becoming increasingly important, as revealed in a recent study conducted by Wolters Kluwer.
According to FinTech Finance, the survey, which included 181 finance leaders, revealed that a significant 68% of CFOs believe that AI is essential to finance operations, particularly in areas such as financial reporting.
Despite the enthusiasm, research shows that the majority of finance teams are still in the early stages of AI integration. Approximately 9% of organizations surveyed have begun scaling their AI efforts and navigating the complexities of effectively leveraging AI to enhance operational efficiency and decision-making.
Technology giants like Microsoft, Oracle, and Workday are at the forefront of the AI revolution, developing advanced tools to automate critical financial operations and address common challenges such as skills shortages and security concerns. For example, Microsoft has integrated AI capabilities into its Dynamics 365 ERP platform, making it much more useful for finance functions.
The role of AI in finance is evolving from handling routine tasks to engaging in more substantive activities. Approximately 45% of CFOs are currently deploying AI for medium-impact functions, such as data visualization to enhance analytical capabilities.
The future of generative AI is promising, with over 98% of CFOs expecting generative AI to speed up decision-making processes within their industry over the next three years. As competition intensifies among generative AI providers, CFOs are expected to benefit from a wider range of options, allowing them to refine their strategies to tackle financial challenges and improve risk management, particularly in fraud prevention. may be.
Perttu Nihti, CPO at Basware, shared insights on the growing confidence among CFOs in the potential of AI. He said: “There is no doubt that AI will play a key role in the CFO’s office across areas such as fraud prevention. As proofs of concept and pilot schemes realize ROI, use cases for AI in finance will start to increase. It’s encouraging to see confidence growing among CFOs.”
Nihti also highlighted the transformative impact that AI-powered automation has on finance operations, stating, “AI-powered automation will have a transformational impact on operations within finance teams, reducing traditionally time-consuming tasks. AI can help CFOs and finance teams save valuable time by automating repetitive tasks and streamlining workflows. You can take back each week and free up that time for overarching strategic focuses like compliance. ”
Additionally, the shift in CFO attitudes toward AI is also evident in a recent Gartner survey, which showed a 66% increase in optimism about AI’s potential business value compared to last year. Previous research by Sage found that 86% of organizations have adopted AI, but only about half are actively using AI-powered tools in finance. It supports the results.
Commenting on the integration challenges, Jackie Curtin, Executive Vice President and Group Financial Controller at Sage, said: skills gaps, budget constraints, data security concerns, and more. ”
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