The use of AI in corporate financial services is becoming increasingly important, as highlighted in a recent survey conducted by Wolters Kluwer.
According to Fintech financingThe survey, conducted among 181 finance executives, found that a significant 68% of CFOs believe AI is crucial to their financial operations, particularly in areas such as financial reporting.
Despite this enthusiasm, the survey shows that a majority of finance teams are still in the early stages of AI integration. Around 9% of organizations surveyed have begun to expand their AI initiatives, navigating the complexities of effectively leveraging AI to improve operational efficiency and decision-making.
Tech giants like Microsoft, Oracle, and Workday are at the forefront of the AI revolution, each developing advanced tools that automate essential financial tasks and address common challenges like skills shortages and security issues. Microsoft, for example, has integrated AI capabilities into its Dynamics 365 ERP platform, significantly enhancing its usefulness for finance functions.
The role of AI in finance is evolving from managing routine tasks to engaging in more substantive activities. About 45% of CFOs now deploy AI for medium-impact functions, including data visualization, which improves analytical capabilities.
The future of generative AI looks bright, with more than 98% of CFOs expecting it to accelerate decision-making processes within their industry in the next three years. As competition among generative AI vendors intensifies, CFOs are expected to benefit from a wider range of options, which could refine their strategies to address financial challenges and improve risk management, including fraud prevention.
Perttu Nihti, CPO of Basware, shared his views on CFOs’ growing confidence in the potential of AI. He highlighted: “AI undoubtedly has an important role to play within the CFO’s office in areas such as fraud prevention. As proofs of concept and pilots generate ROI, it is encouraging to see growing confidence among CFOs as use cases for AI in finance begin to scale up.
Nihti also highlighted the transformative impact of AI-based automation on financial operations: “AI-based automation can have a transformative impact on operations within the finance team, improving the efficiency in areas such as invoice management and financial reporting, which are traditionally time-consuming tasks. By automating repetitive tasks and streamlining workflows, AI allows CFOs and finance teams to reclaim valuable hours each week that can be redirected toward overall strategic goals, such as compliance.
Additionally, a recent Gartner study reveals a shift in CFO attitudes toward AI, showing a 66% increase in optimism about the potential business value of AI compared to last year. Previous research from Sage has supported this finding, noting that while 86% of organizations have adopted AI, only about half are actively using AI-based 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 specialist functions like finance requires an approach more focused and perhaps overcome additional obstacles. such as skills gaps, budget constraints or concerns about data security,”
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