AI Revolutionizes Finance: Insights from KPMG’s Global Report

NEW YORK, ​5 December 2024 – According ​to KPMG’s ​latest report, ​the global financial industry is experiencing a seismic change caused by artificial intelligence (AI). The study notes that 71% of ​organizations already benefit from IA ​funding, with adoption expected to reach almost universal levels in three years. This transformation ​involves restructuring financial transactions, from accounting to cash management, and redefining the roles of financial professionals ​and auditors.

The KPMG study surveyed 2,900 companies ​in 23 developed and emerging markets, ​including North America, Europe, Asia-Pacific and Africa. The results show that companies using tangible benefits from AI, such as efficiency gains, ​reducing human error, and better predictive analysis. In ​particular, 57% of ​major adopters ​report that their IA ​initiatives exceed ​IRO’s expectations, illustrating the potential for transformation of these technologies.

“IA is not ​just an innovation, it’s a game change for finance,” said David ​Rowlands, world AI leader ​at ​KPMG International.

The report identifies a change in traditional applications from AI to General AI (Gen AI), with nearly 40% of companies flying or adopting AI Gen in financial reporting. Leaders ​on the ground set ambitious targets, 95% anticipating significant integration of AI Gen into their processes by 2027.

Transforming Financial Information

The report notes that the adoption of AI is particularly advanced in financial reporting. Companies in mature markets such as the United States, Japan and Germany are ​leading, while others in emerging regions are catching up. ​AI’s ability to ​improve data accuracy, automate complex calculations and provide real-time information has made it essential for financial reporting. KPMG research ​also emphasizes transparency and ethical use, which are essential to building confidence in AI outcomes.

“The AI ​role in financial reporting goes beyond automation, allowing for the ability to transform the ​way organizations plan and implement their strategies,” said Sebastian Stöckle, Global ​Head of Innovation ​and AI at KPMG.

Despite these advances, ​challenges remain, such as ​data security, regulatory ​compliance and integration of existing systems, which require targeted investments and strong governance frameworks.

AI in the tax and treasury administration

While the adoption of AI is accelerating in areas such as accounting and financial planning, budget management ​remains a border ​with untapped potential. ​The complexity of tax laws and dependence on human ​judgment have slowed the rollout of the IV. However, the IA Generative is prepared to fill these gaps, offering ​solutions for ​automated ​compliance, fraud detection and real-time scenario planning.

Cash management benefits from AI’s ability to optimize debt strategies, anticipate cash flows and manage financial risks. The KPMG report cites success stories, including companies using AI to assess credit risk and detect fraud, ​showing their versatility in various financial areas.

The changing ​role ​of auditors

The integration of AI is also ​reshaping the audit landscape. More and more companies expect ​auditors to ​adopt artificial intelligence tools ​for real-time data analysis, anomalies detection and predictive audit. Many organizations are looking for ​auditors who can assess AI governance and provide assurance on AI processes. This development highlights the key role of auditors in accountability and confidence in AI-oriented financial functions.

“The auditors ​should not only use the IA, but also guide organizations in implementing effective IA ​controls,” said Thomas Mackenzie, Director of Global Audit Technology at KPMG.

The report shows that only 15% of companies receive ​regular AI communications from their auditors, a gap that ​organizations expect to fill in the near ​future.

Obstacles and future directions

The ​KPMG report identifies barriers to adopting AI, including data security issues, integration issues and the high cost of implementation. In ​addition, transparency and ethical considerations remain critical. To overcome these ​barriers, the ​report recommends investing ​in modern IT platforms, robust training programs, and ​governance structures that emphasize the ethical use of ​IA.

Organizations at the forefront of IA adoption demonstrate that a comprehensive strategy is essential ​to success. Leaders invest significantly in IA and focus ​on skills development by fostering innovation within their teams. With these measures, they are not only addressing the challenges, but also leading a substantial ROI and achieving competitive advantages.

As AI ​continues to transform finances, the KPMG report serves as a plan ​for organizations seeking ​to navigate this dynamic landscape. The results show that IA adoption ​is not limited to technology; It ​requires a change of mindset, governance ​and collaboration to unlock its ​full potential.