According to a December 2024 report by KPMG, the use of AI in the finance function has reached its highest level yet, with 62% of U.S. companies using AI to a moderate or large degree, 58% piloting or deploying generative AI and 52% using AI specifically in financial reporting.
Importantly, 92% of companies report that their finance function’s AI initiatives are meeting or exceeding their ROI expectations, and almost one-third plan to increase AI budgets or shift funds from other activities to drive further AI adoption.
“The use of AI and GenAI is becoming ubiquitous across accounting, financial planning, risk management and more, and companies are seeing significant returns on their digital transformation efforts as they integrate these technology capabilities into their financial reporting processes,” Scott Flynn, U.S. vice chair — audit at KPMG, said.
The report, AI in Finance: Transforming into a New Era with the AI-Empowered Finance Function, found that in the next three years, 100% of US finance leaders report they will be either piloting or using AI in financial reporting.
Richard Entrup, a senior advisor on KPMG’s Enterprise Innovation team, has been focused on AI for decades but says November 2022 was an inflection point for AI.
“When ChatGPT was introduced, it marked the first time every company in every sector had to explore AI as a viable way to improve business efficiencies,” he said.
“Finally, technology is providing real efficiencies, revenue opportunities and business advantages. I have never seen a trajectory of interest in anything, ever, and to this magnitude — the internet, the PC, smart phones, whatever? Nothing has had the propensity to make such a huge impact on the world than AI.
Entrup said ChatGPT has created a resurgence because GenAI democratized as well as consumerized AI via natural language processing or talking to your data.
“Before ChatGPT you had to be a computer PhD to interface with the technology and the data. The interface is very natural.
“We are still very early, but the pace of change is unprecedented compared to anything that has happened in the last 40 years,” Entrup said, adding, “the biggest business advantage GEN AI provides is the ability to leverage your own data to operate your enterprise more efficiently and be more competitive — having data structured properly and in a trusted framework.”
Technologies that soon may be greatly influenced by AI The influence of AI on quantum computing is going to be big over the next 5-10 years, according to Richard Entrup. Quantum computing is an advanced field of computer science that leverages the principles of quantum mechanics to solve complex problems that are beyond the capabilities of classical computers. Other possibilities include:
Entrup said consumers will benefit using capabilities such as co-pilot on your computer.
“Just asking the agent for something, whatever it is you want,” he said. “Everything we do in our daily lives, professionally and in business all by just asking for it.”
Entrup said organizations need to define their business goals and determine how this technology can benefit their businesses.
“From accounting to operational efficiencies, financial reporting, tax, and audit, you do everything cheaper, faster and more accurately. Every company in every sector can take advantage of AI.
Entrup said one challenge facing the industry is keeping top talent.
“That is a real challenge — some companies are partnering with other companies,” he said. “The top talent wants to go to the big tech companies”
In New Jersey, Entrup says the large pharma and biotech companies are all using machine learning in developing new drugs as well as using AI in every department — engaging with clients and retaining employees.
“Any company today not looking into GenAI would be like not using email or not having a website,” he said.
“Lots of companies are still laying back and only a low percentage of companies are going all in.”
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