Financial reporting emerged as the most common usage area for AI, but its application is widening to include treasury management, risk management, and tax. As the use of AI in finance grows, the benefits multiply. Initially, finance teams reported two to three benefits, but by the Leaders stage, this number increased to seven. Additionally, 57% of Leaders claim that the return on investment (ROI) is not only meeting but exceeding their expectations. Even among less advanced adopters, nearly a third (29%) reported the same.
While the adoption of AI is on the rise, companies still face common barriers. Data security vulnerabilities (57%) top the list, followed by limited AI skills and knowledge (53%), gathering consistent data (48%), and costs (45%). However, David Rowlands, global head of AI at KPMG International, emphasizes that businesses should act now to reap the benefits. "Businesses need to proceed with robust governance in place and a clear focus on the outcomes they’re looking to achieve," he said. "The potential benefits are multiplying as we get further into a new era powered by AI."
For example, the use of generative AI has seen significant growth. The percentage of companies with no intention to use this technology fell from 6% to just 1% in this survey. Companies are actively experimenting with piloting or using AI for treasury and risk management, but for tax management, they are slightly behind, with fewer than one-third of companies piloting or using AI in this area. This indicates the evolving nature of AI's application in different finance functions.