A total of 71% of organisations are already leveraging AI to enhance their financial operations, with adoption set to reach nearly universal levels within the next three years, latest KPMG research shows. Financial accounting and reporting account for the biggest AI use in finance, but the AI use is spreading across more finance areas.
The findings result from two KPMG studies conducted in 2024. The first took place in April and surveyed 1,800 companies across 10 major economies. The second, conducted in September, surveyed 2,900 companies and covered broader finance functions like accounting, treasury, and risk management.
Key findings from KPMG’s research
- 71% of companies are actively using AI in finance, with 41% employing it to a moderate or large extent.
- Nearly two-thirds of companies are piloting or utilising AI in accounting and financial planning.
- Half of the organisations are integrating AI into treasury and risk management, driving improvements in fraud detection, credit risk assessment, and cash-flow forecasting.
- 57% of leaders reported AI-generated ROI that exceeds expectations.
A similar survey by Deloitte last year showed that AI is expected to affect 50% of strategic decision-making in finance by 2029. Last year, the Onguard FinTech Barometer revealed that almost half of CFOs and finance professionals in the Netherlands (45%) see AI as the technology with the greatest impact on financial processes.
| What are the main areas of improvement for AI in finance? 1. Financial planning 2. Accounting 3. Risk management 4. Treasury management 5. Tax operations & reporting |
AI in finance: Top 5 barriers to implementation
Despite its benefits, AI adoption in finance faces significant hurdles, KPMG showed:
- Data security vulnerabilities (57%)
- Limited AI skills and expertise (53%)
- Inconsistent data availability (49%)
- High implementation costs (45%)
- Transparency and accountability concerns (40%)
The findings match the Onguard research in the Netherlands where lack of skills (28%), collaboration hurdles between IT and finance (35%), and cyber security issues (11%) were the top three factors complicating the technology implementation process.
“A major challenge when implementing a new technology is that it often requires a lot of customisation if you want to use the tool effectively. After all, you often have to deal with a variety of software packages and tools that lack interoperability. To ensure a more seamless operation, close collaboration with the IT department is essential. This can be done, for example, by setting up a joint project team in which employees from different disciplines work together. This promotes a better understanding of each other’s challenges and needs, making the implementation of new technologies much smoother,” Rogier van Velden, Head of Credit Solutions Netherlands at Aon, has earlier told Onguard.
| Did you know? 35% of finance professionals in the Netherlands would like to digitise more in the finance department but are being held back by the IT department, according to the Onguard research from 2024. |
Embracing the future of AI in finance
“To overcome these barriers, act early to establish AI guidelines and governance mechanisms, create digital processes to meet regulatory requirements, and shift to modern IT platforms that facilitate AI. Crucially, financial teams should pilot AI initiatives to validate ROI and ensure effectiveness before scaling these solutions across the department,” the KPMG report reads.
But what is the role of the finance professional amid the increasing integration of AI in finance? Last year, Onguard asked interim credit managers in the Netherlands to share their views on what’s coming. Check out what they said.
