AI in Finance

AI in finance reaches high adoption, exceeding ROI

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Artificial intelligence (AI) is revolutionizing corporate finance, enabling businesses to achieve greater efficiency, accuracy, and decision-making capabilities. It has also contributed to cost reduction, improved regulatory compliance, and faster processes. A recent study by accounting firm highlights the rapid pace of AI adoption in corporate finance globally, with US companies leading the charge in many aspects.

The research shows that 88% of US companies are already using AI in finance, with 62% employing it to a moderate or large degree. This places the US second only to China, where 66% of companies report moderate or large-scale AI use in finance. Other key markets embracing AI include India (51%), Korea (49%), and Germany (47%). However, adoption rates remain lower in regions like Dubai (23%), Saudi Arabia (21%), and Africa (16%). These statistics reflect varying levels of maturity in AI implementation across countries and industries.

Among US companies, 12% have implemented AI on a large scale, 26% use it to a moderate extent, and 39% report small-scale use. The adoption is not limited to financial reporting processes but extends to broader functions such as accounting, treasury management, risk management, and tax management. Companies have found that embedding AI in these areas yields tangible benefits, such as faster and more efficient processes, enhanced data accuracy, predictive power, and better insights. This has enabled finance teams to spend more time on value-adding tasks rather than routine operations.

The survey also highlights that AI adoption is most prevalent among large companies with revenues exceeding $10 billion, accounting for 70% of the respondents. These organizations are primarily in industrial manufacturing, financial services, technology, consumer retail, and healthcare industries. Roles such as Chief Financial Officers, Chief Digital Officers, and Audit Committee Directors are actively driving AI initiatives, ensuring its alignment with organizational goals.

AI's benefits go beyond operational improvements. Many companies report achieving significant ROI through its adoption. For instance, 61% of leading US adopters stated that

AI's benefits exceeded expectations. Even among early adopters, 33% reported that ROI surpassed initial forecasts. Success stories include enhanced cross-departmental collaboration, better integration of AI solutions, and positive outcomes across various functions.

Despite these advances, barriers such as regulatory challenges, governance concerns, and organizational readiness persist. However, the rapid pace of AI development and the associated advantages encourage businesses to overcome these hurdles. CFOs and finance teams are urged to prepare for the transformative changes AI will bring in the coming years.

Accounting firm's research underscores the transformative potential of AI in reshaping corporate finance and audit functions. It highlights the need for auditors to play a crucial role in assessing AI controls, governance maturity, and technology integration. As AI continues to evolve, companies are expected to rely on its capabilities to stay competitive, streamline operations, and make more informed decisions.