The new reality
The Chief Financial Officer (CFO) must remain vigilant in navigating the evolving landscape of today’s business environment. KPMG research finds that U.S. Chief Executive Officers (CEOs) are acutely aware of the unprecedented changes and disruptions impacting organizations, which pose significant risks to long-term sustainability. Companies across all industries are grappling with the need to enhance customer-centric strategies, adapt to shifting workforce demographics, address converging business models, respond to geopolitical shifts, and comply with an evolving regulatory framework, all while embracing emerging technologies.
In particular advancements in AI, data, analytics, and the intelligent cloud are poised to drastically transform the size, shape, and composition of the finance function. These technologies will enable more data driven decision-making, streamline operations, manage risk and compliance, evaluate and cultivate a modern workforce, and unlock new opportunities for innovation and efficiency. As a result, CEOs are increasingly relying on the finance function to assume a more expansive and strategic role than ever before.
AI is a game changer for finance
Companies are turning to AI in every area of finance – our research shows that the use of AI is rapidly expanding: 71 percent of companies are using AI in finance, 41 percent of them to a moderate or large degree.
The below chart shows percentages of AI adoption across different departments of the finance function. According to our findings, the accounting and financial planning groups are furthest ahead in using AI because of the potential benefits it brings to many of their activities, such as improved data processing and financial reporting, real-time insights, and predictive analysis. Currently, nearly two-thirds of companies are piloting or using AI for accounting and financial planning.
Other areas of finance 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.
Source: KPMG global AI in finance report
Embracing Al in finance is not just about leveraging advanced technology; it's about cultivating a foundation of trust. By prioritizing transparency and ethical practices, organizations can harness the power of Al to enhance decision-making, optimize financial strategies, and foster a culture of accountability, ultimately driving sustainablegrowth and innovation.
Sebastian Stöckle
Global Head of Innovation and AI, Audit KPMG International
A look at AI adoption
