According to a report by KPMG from December 2024, the adoption of AI in finance has reached unprecedented levels, with 62% of U.S. companies utilizing AI to a significant extent. Furthermore, 58% are experimenting with or implementing generative AI, and 52% are incorporating AI specifically for financial reporting purposes.
Significantly, 92% of businesses indicate that their AI initiatives in finance are meeting or surpassing expected returns on investment (ROI), with nearly a third planning to enhance AI budgets or reallocate funds from other projects to promote further AI integration.
“AI and GenAI are becoming integral in areas such as accounting, financial planning, and risk management. Companies are witnessing substantial returns from digital transformation as they weave these technologies into their financial reporting workflows,” remarked Scott Flynn, U.S. vice chair — audit at KPMG.
The study titled AI in Finance: Transforming into a New Era with the AI-Empowered Finance Function revealed that within the next three years, all U.S. finance leaders expect to be either testing or actively utilizing AI in financial reporting.
Richard Entrup, a senior advisor on KPMG’s Enterprise Innovation team with decades of experience in AI, cites November 2022 as a turning point for AI technology.
“The introduction of ChatGPT marked a significant shift, compelling every enterprise across sectors to evaluate AI as a feasible avenue for enhancing operational efficiency,” he stated.
“Finally, technology is delivering tangible efficiencies, revenue potentials, and competitive advantages. The level of interest is unprecedented, surpassing anything in history — the internet, personal computers, smartphones — nothing has impacted the world like AI has.”
Entrup emphasized that ChatGPT has invigorated interest in AI because GenAI has adeptly democratized and consumerized AI through natural language processing, allowing users to engage with their data conversationally.
“Prior to ChatGPT, interfacing with technology and data required advanced computing knowledge. Now, the interaction has become remarkably intuitive.
“We are only at the beginning, yet the speed of advancement is unparalleled compared to any development in the last four decades,” Entrup added. “The foremost advantage that GenAI offers is the capacity to utilize your own data to operate your business more effectively and maintain a competitive edge — provided that your data is well-organized and trusted.”
Technologies likely to be significantly impacted by AI
Richard Entrup forecasts that AI will have a major influence on quantum computing over the next 5-10 years. Quantum computing harnesses quantum mechanics to tackle intricate problems beyond classical computing capabilities. Other anticipated developments include:
- Headsets: VR headsets resembling everyday sunglasses.
- Glasses: Smart glasses for surgeons, equipped with AI during procedures.
- Avatars: Future avatars may surpass human intelligence.
- Robotics: Advancements in robotics will be driven by AI.
- Chips: The next frontier lies in developing ‘computer brains’, with chips being a critical focus area.
Entrup believes that consumers will benefit from features like co-pilots on computers.
“Simply asking the agent for something — whatever your need may be — will streamline processes. Everything we handle in professional and personal contexts will be achievable through mere requests,” he stated.
Furthermore, Entrup mentioned that organizations should establish their business objectives and explore how this technology can enhance their operations.
“In areas ranging from accounting to operational efficiencies, financial reporting, tax, and auditing, AI enables tasks to be completed more cost-effectively and accurately. Every organization, regardless of sector, can reap the benefits of AI.”
Entrup highlighted the challenge of retaining top talent as a significant issue facing the industry.
“This poses a genuine challenge — many companies are collaborating with others,” he noted. “Top talent is drawn to major technology firms.”
In New Jersey, Entrup observed that large pharmaceutical and biotech firms are deploying machine learning in drug development while incorporating AI across various departments to engage clients and retain employees.
“Any company today that isn’t exploring GenAI is akin to a business that hasn’t adopted email or established a website,” he asserted.
“Many organizations are still hesitant, and only a small fraction are fully committing.”
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For more information, reach KPMG at: kpmg.com/xx/en.html.
