TL;DR:
- 80% of financial decision-makers believe AI will enhance productivity in finance.
- AI is expected to become a core component of finance processes in the next five years.
- AI streamlines data management, anomaly detection, and improves forecasting.
- AI adoption faces challenges in employee training, data privacy, and integration.
- AI is seen as both a threat and an opportunity for job roles in finance.
- AI can increase productivity, reduce costs, and enhance employee satisfaction.
- The future of AI in finance looks promising with continued growth expected.
Main AI News:
In a recent global survey titled “AI-Driven Finance,” OneStream, a leading provider of corporate performance management (CPM) solutions, has revealed a game-changing perspective. A resounding 80% of financial decision-makers now firmly believe that artificial intelligence (AI) will play a pivotal role in enhancing productivity within the realm of financial management. This revelation underpins the growing consensus among finance leaders that AI is poised to become an indispensable component in the coming five years, deeply integrated into finance and accounting processes and workforce strategies.
This groundbreaking semi-annual survey, conducted in collaboration with Hanover Research, focused its lens on finance leaders spanning North America, Europe, and Asia-Pacific. Their perceptions regarding the transformative potential, as well as current and anticipated usage of AI, machine learning, and generative AI in finance processes and talent development, were explored.
Tiffany Ma, Senior Product Marketing Manager for OneStream AI Services, contextualizes these findings, “With an impending scarcity of accounting and finance talent in today’s labor market, coupled with the tumultuous global economic landscape, our survey underscores the surging interest in AI as a catalyst for heightened productivity and enhanced forecasting precision within accounting and finance teams. As financial leaders embrace AI to enhance efficiency and reduce costs, we anticipate it will emerge as a key differentiator for businesses seeking success in the new year, both in terms of business outcomes and talent acquisition.”
Among the financial leaders embracing AI to bolster efficiency and accuracy in business processes, a common theme emerges. AI is being judiciously employed to streamline and enhance data management, with a focus on data correction (69%), cleansing (60%), mapping (59%), and anomaly detection (53%).
AI’s Influence on Decision-Making and Forecasting
The survey also underscores AI’s transformative impact on decision-making and forecasting within businesses. An impressive 60% of financial decision-makers believe AI technologies yield more actionable insights and significantly accelerate forecasting processes. Additionally, over half of them are convinced that AI has streamlined decision-making (59%) and enhanced the precision of forecasting (58%).
Furthermore, AI is spearheading the automation of critical financial processes. A staggering 73% of respondents report enhanced capabilities to predict and manage risks through the integration of AI, with one-third acknowledging cost savings as a direct benefit.
When queried about AI’s effect on the pace of financial planning, 43% expect AI-powered forecasts to be updated in real-time, while 31% anticipate daily updates.
Challenges and Opportunities in AI Adoption
Despite the overall optimism surrounding AI, financial leaders do encounter challenges in implementing AI technologies. Approximately one-third of businesses grapple with hurdles related to employee training (32%) and data privacy regulations and procedures (31%). Challenges like data breaches and cybersecurity (28%) and the integration of AI with existing processes contribute to hesitance in AI adoption.
To address these challenges, 43% of survey participants are intensifying their focus on data security, while another 43% are implementing or considering new software applications. Pioneering companies like OneStream are now delivering tailored AI solutions designed to tackle specific functional use cases, facilitating high levels of success and positive business outcomes.
AI: A Catalyst for New Opportunities and Enhanced Productivity
While 46% of respondents perceive AI as a potential threat to existing roles in accounting and finance, a resounding 72% believe that AI will open doors to new job opportunities within the industry. Remarkably, 80% of respondents envision AI empowering finance departments to boost productivity and efficiency, thereby accelerating employee output speed, data insights, and output quality (48%).
As labor shortages continue to plague organizations, the integration of AI promises to alleviate talent scarcity issues by enhancing productivity, elevating decision-making capabilities, and honing the skill sets of accounting and finance teams. Over one-third of respondents report that AI grants employees more time to focus on innovation-driven tasks such as product development (36%) and saves substantial costs previously allocated to compliance and regulatory reporting (37%). Moreover, 37% of employers affirm that AI is enhancing employee satisfaction and retention. In terms of AI upskilling, more than half of businesses provide internal AI training sessions (58%), with an additional 57% actively developing training programs.
The Radiant Future of AI in Finance
Over the next five years, financial decision-makers forecast that AI technologies (55%) and generative AI (66%) will emerge as pivotal components of financial processes. One-third expect their teams to embrace AI technologies (37%) and generative AI (29%) with increasing frequency. Although challenges remain, particularly concerning privacy and regulations due to the sensitive nature of financial data, the future outlook for AI in the finance sector appears undeniably promising.
Conclusion:
The OneStream Research findings underscore the growing confidence in AI’s potential to revolutionize the finance sector. As AI becomes integral to finance processes, businesses stand to benefit from increased productivity, improved decision-making, and cost savings. While challenges persist, AI’s role in shaping the future of finance appears bright, presenting opportunities for innovation and enhanced efficiency in the market.
