Diving brief:
- More than two thirds of corporate finance teams work in the field exploratory stage of artificial intelligence implemented, information services company Wolters Kluwer found in a global survey.
- Only 9% of respondents said their organization The finance function was already exploring ways to expand AI projects on a larger scale, according to a report on the findings released Thursday. The survey was completed by 181 participants, representing various roles within their organizations, primarily in the financial field.
- “AI adoption (in the CFO’s office) is just beginning to accelerate,” the report said. The study “indicates that organizations are actively interested in implementing AI-based technologies, but are still exploring options and learning how AI can be integrated into their finance functions.”
Dive overview:
The research comes as businesses see an explosion of AI-based software tools designed to streamline workflows, with Microsoft working to become a dominant force in the field.
“We are rapidly infusing AI into every layer of the technology stack, as well as every role and business process, to drive productivity gains for our customers,” said the Microsoft CEO. Satya Nadella said on an earnings call about a year ago.
In mid-2023, Microsoft announced the integration of a new set of generative AI capabilities in its Dynamics 365 enterprise resource planning platform, designed to helping organizations automate and manage core business processes, including finance. Earlier this year, the software giant unveiled Copilot for Finance, a virtual assistant for finance teams, after introducing similar AI companions for sales and customer service professionals.
Meanwhile, financial and human resources management platform provider Workday last month announced a major deployment of new AI capabilitiesincluding a virtual assistant that resembles Microsoft’s Copilot tool.
And Oracle’s NetSuite business unveiled its own set of AI enhancements last month. Among other updates, new AI capabilities have been added to NetSuite Enterprise Performance Management to help finance departments “streamline reporting, expand insights, improve decision making, and steer their business toward new growth opportunities.” according to a press release.
A Gartner study released last month found that CFOs have become more optimistic on the potential commercial value of AI after earlier skepticism. According to the study, 66% of finance leaders say they are more optimistic about technology than last year. Respondents said they are furthest along in adopting use cases related to intelligent process automation and anomaly and error detection.
Another study, published by financial software provider Sage in May, showed that 86% of organizations have adopted AI, Yet only about half were using AI-based financial tools.
“While many organizations see great benefits from AI, its integration into specialist functions such as finance requires a more focused approach and perhaps overcoming additional barriers, such as lack of skills, budget constraints or concerns about data security,” Jacqui Cartin, senior vice president and group financial controller at Sage, said in an emailed response to questions.
Among survey respondents who have adopted AI, reported results include better decision-making and the ability to predict trends with greater accuracy, Cartin said.