Unleashing the Power of Gen AI: How Digital World Class® Finance Organizations Thrive

In a rapidly evolving digital landscape, finance organizations are facing unprecedented challenges and opportunities. The latest research from The Hackett Group reveals that Digital World Class® finance organizations are leveraging the transformative power of generative artificial intelligence (Gen AI) to drive unparalleled efficiency, cost savings, and strategic value. By embracing this cutting-edge technology, these trailblazers are redefining the finance function and setting a new standard for the industry.

Unlocking Unprecedented Efficiency and Cost Savings with Gen AI

Streamlining Operations and Reducing Costs

Digital World Class® finance organizations are leading the charge in optimizing their operations through the strategic deployment of Gen AI. By automating repetitive tasks and streamlining processes, these organizations are able to operate with 47% lower process costs and 50% fewer full-time equivalent (FTE) staff compared to their peers. This remarkable efficiency is achieved through a combination of increased automation, data-driven decision-making, and the seamless integration of Gen AI into their workflows.

Enhancing Productivity and Freeing Up Talent

The impact of Gen AI extends beyond cost savings, as Digital World Class® finance organizations are also experiencing a significant boost in staff productivity. By automating mundane tasks and empowering employees with intelligent insights, these organizations are able to free up their talent to focus on higher-value activities. This shift in focus allows finance teams to dedicate 82% more time to forward-looking analyses, enabling them to anticipate and adapt to market changes with greater agility.

Driving Faster Transformation and Consolidation

The speed at which Digital World Class® finance organizations can adapt and transform is truly remarkable. These organizations are able to close and consolidate their financials 36% faster than their peers, while also completing forecasts five days sooner. This agility is a direct result of their strategic investments in Gen AI, which provide real-time visibility into operating performance and empower finance teams to make data-driven decisions with greater confidence.

Enhancing Data Accuracy and Collaboration

Underpinning the success of Digital World Class® finance organizations is their commitment to data integrity and cross-functional collaboration. By leveraging Gen AI to standardize data and coding definitions, these organizations are able to reduce complexity and improve data accuracy by 19%. Additionally, they are 2 times more likely to provide online access to management information reports, fostering greater transparency and enabling real-time collaboration across the organization.

Driving Exponential Innovation and Value Creation

As Digital World Class® finance organizations continue to harness the power of Gen AI, the possibilities for exponential innovation and value creation are limitless. By automating customer-to-cash processes, generating 95% of customer invoices electronically, and optimizing their days payable outstanding and days sales outstanding, these organizations are able to enhance scalability, improve efficiency, and reduce manual errors.

Becoming Valued Business Partners

The transformative impact of Gen AI extends beyond operational efficiency, as Digital World Class® finance organizations are also emerging as trusted business partners. By dedicating more time to forward-looking analyses and providing greater visibility into performance, these finance teams are able to deliver 24% greater confidence in their work and are 44% more likely to be considered a valued business partner by their colleagues.

Investing in the Future of Finance

The success of Digital World Class® finance organizations is underpinned by their consistent investment in technology, with 41% more of their total operating costs dedicated to technology compared to their peers. This strategic focus on modernizing their technology infrastructure and embracing emerging technologies, such as Gen AI, smart automation, and advanced analytics, has been a crucial driver of their efficiency and innovation.As the finance landscape continues to evolve, the Digital World Class® finance organizations are poised to lead the way, leveraging the power of Gen AI to redefine the role of finance and deliver unparalleled value to their organizations.