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Recent advancements in artificial intelligence (AI) are transforming the finance sector, with companies increasingly adopting AI technologies to enhance their operations. A recent report by KPMG highlights that 71% of surveyed companies are utilizing AI in their finance functions, with significant investments expected to continue in the coming years.
Key Takeaways
- 71% of companies are using AI in finance operations.
- 92% of companies report AI initiatives meeting or exceeding ROI expectations.
- Generative AI is gaining traction, with 58% of companies piloting or deploying it.
The Rise of AI in Finance
The KPMG Global AI in Finance Report reveals that AI is being integrated into various finance functions, including accounting, financial planning, treasury management, risk management, and tax management. The study surveyed 2,900 companies across 23 countries, indicating that AI adoption is a global trend.
In the U.S., AI adoption has reached unprecedented levels, with 62% of companies using AI to a moderate or large degree. Notably, 78% of companies have made progress in piloting or using AI for financial planning, while 76% have done so for accounting. However, less than half are utilizing AI for tax and operations.
Generative AI: A Game Changer
Generative AI is emerging as a key player in the finance sector. According to KPMG, 58% of U.S. companies are currently piloting or deploying generative AI technologies. This trend is expected to grow, with 100% of U.S. finance leaders indicating plans to adopt AI in financial reporting within the next three years.
The benefits of generative AI are evident, as companies report significant returns on their digital transformation efforts. Scott Flynn, KPMG’s U.S. Vice Chair of Audit, stated that the integration of AI and generative AI is becoming ubiquitous across various finance functions, leading to improved efficiency and effectiveness.
Amazon’s Innovative Approach
Amazon Finance Automation has taken a significant step in leveraging AI by developing a generative AI Q&A chat assistant using Amazon Bedrock. This innovative solution addresses the challenges faced by Accounts Payable (AP) and Accounts Receivable (AR) analysts, who often spend hours retrieving information from various sources.
The chat assistant utilizes a Retrieval Augmented Generation (RAG) pipeline, allowing analysts to quickly access relevant information and respond to customer queries. This advancement not only streamlines the process but also enhances productivity within the finance team.
Future Outlook
As AI continues to evolve, its impact on the finance sector is expected to grow. Companies are increasingly recognizing the importance of AI in driving efficiency and improving decision-making processes. With 92% of companies reporting positive ROI from their AI initiatives, the future of AI in finance looks promising.
In conclusion, the integration of AI and generative AI technologies is reshaping the finance landscape, offering companies new opportunities for growth and innovation. As organizations continue to invest in these technologies, the finance sector is poised for a transformative shift that will redefine traditional practices and enhance overall performance.
Sources
- KPMG Global AI in finance report, KPMG.
- KPMG Survey: AI Adoption Across US Finance Functions Reaches Highest Levels, with ROI Exceeding Expectations, KPMG.
- How Amazon Finance Automation built a generative AI Q&A chat assistant using Amazon Bedrock | AWS Machine Learning Blog, Amazon Web Services.
