AI Transforms Finance Decision-Making: KPMG Highlights Governance and Data Quality as Essential for Unlocking Value.
According to a recent KPMG report, artificial intelligence is evolving into a critical decision-making engine rather than merely serving as a cost-cutting tool. The survey, which included 1,013 senior finance leaders from 20 countries and 13 sectors, indicates that the adoption of AI in finance has more than doubled in just two years, escalating from 30% in 2024 to 75% by 2026. Organizations utilizing AI in essential areas such as financial planning, reporting, and commercial analysis report notable enhancements in decision-making quality and efficiency, with a significant majority acknowledging that AI meets or exceeds their return-on-investment expectations.
This burgeoning AI application in finance is poised to reshape the industry landscape, offering new growth avenues for investors and stakeholders alike. The substantial uptick in AI deployment is expected to drive market competitiveness, as organizations that manage to operationalize AI effectively are likely to experience enhanced performance metrics, especially in judgment-heavy tasks. However, KPMG stresses that the mere implementation of AI technologies will not automatically yield improvements; organizations must focus on governance, controls, and assurance readiness to capitalize fully on their AI investments.
Looking ahead, the future of AI in finance appears promising yet challenging. As firms prioritize AI implementation in planning, forecasting, and risk assessment, the critical need for robust data quality and system interoperability will become even more pronounced. Additionally, while many organizations are endeavoring to upskill their finance teams to meet the demands of AI integration, the hiring of individuals with specialized skill sets remains low. As the competitive advantage shifts from simple AI usage to effective operationalization, organizations that excel in governance and oversight will likely lead in performance improvements and establish themselves as market leaders.
Source: Livemint