4 ways AI is transforming finance in government

Things aren’t just changing quickly—they’re changing at the speed of AI

Consider some of the overwhelming recent evidence:

74%

of organizations are already generating value from AI.

Source: 2024 KPMG US Technology Survey Report

71%

are actively using it in their decision-making.

Source: GenAI 2024 Survey

> 8 in 10

are planning to scale up their AI investments.

Source: GenAI 2024 Survey

AI is not a single technology, but an umbrella of specific capabilities with their own special superpowers.

A single AI-driven solution typically combines several of these specialized capabilities to deliver significant new quantitative and qualitative firepower. Here are just four ways that finance teams are harnessing these solutions across core functions to deliver impactful new results.

Ontology and Knowledge Graphs

Structured frameworks that connect data, definitions, and relationships to reveal context and meaning across financial systems.

Conversational AI/AI Copilots

AI-powered assistants that understand natural language to help users query data, generate insights, and complete tasks seamlessly.

Causal AI/Root Cause Analysis

AI that identifies cause-and-effect relationships to explain why outcomes occur and predict the impact of future decisions.

Machine Learning (ML)

Self-driven algorithms that learn patterns from data to make decisions automatically.

Intelligent Automation

Fusion of robotic process automation with AI enables automation of complex processes that require understanding, judgment, or adaption beyond simple task execution.

Natural Language Processing (NLP)

Enables systems to understand, interpret, and generate human language.

Predictive Analytics (PA)

Algorithm-driven models that forecast future outcomes from historical data.

Generative AI (GenAI)

Creates new content by synthesizing structured and unstructured data.

4 ways AI can empower Finance

Unlocking data

AI thrives on quality data. In the past, this has required mapping data into clearly defined data schemas, typically in the cloud. But AI can now do much of that work, creating on-the-fly virtual databases using tools like GenAI, ML, and NLP. For example, GenAI can pull essential data directly from applications, process both structured data (defined fields) and unstructured data (PDFs, emails, audio, etc.), and then extract and format the data. The result: An instant database that bypasses legacy data bottlenecks.

Streamlining transactions

AI automates many essential—but previously time-consuming—transactions. Here are some examples of AI modules within the quote to cash function, which use GenAI, NLP, Intelligent Automation, ML, and PA:

Contract engine that automatically generates contracts and prioritizes reviews based on deviations from standard terms.
Quote generator to optimize quotes based on customer profiles, contract terms, and inventory data.
Order engine to capture orders, track fulfillment, generate invoices, expedite collections, and reduce errors related to inventory or contract discrepancies.

Taming the close

AI-powered modules help finance teams dramatically reduce the time and pain of closing cycles and improve productivity and accuracy. These two examples use GenAI, NLP, Intelligent Automation, ML, and PA:

Automated accounting rules engine that compares data to defined rules, automates tasks like journal entries and adjustments, scans for anomalies and errors, and expedites compliance and audit reporting.
Disclosures narrative creator that automates disclosure drafts and reviews, integrates with real-time data and previous reports to ensure consistency, and feeds into reporting.

Elevating FP&A

AI-enabled financial planning and analysis (FP&A) delivers tangible bottom-line benefits with enhanced insights that enable operational agility and create new value faster. These two examples use PA, ML, NLP, and GenAI.

Intelligent forecasting solutions that use continuously trained predictive models, advanced scenario analyses, and both internal and external data to improve the speed, accuracy, and value of forecasts.
Capital expenditure optimizer to better prioritize investments (projects, technology, equipment), enable scenario modeling, optimize allocations, and support real-time monitoring for rapid adjustments.

KPMG ranks #1 for quality AI advice and implementation in the US

According to senior buyers of consulting services who participated in the Source study, Perceptions of Consulting in the US in 2024,KPMG ranked No. 1 for quality in AI advice and implementation services.

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