Artificial intelligence (AI) has emerged as a transformational force, reshaping business processes and unlocking new possibilities for efficiency and innovation in corporate finance.
The latest Gartner survey on AI usage in finance provides evidence of this emerging trend, offering valuable insights into the future growth trajectory of AI in finance.
The Gartner survey reveals a significant milestone. As of 2024, 58 percent of finance functions actively use AI technology -- that's a substantial increase from previous years.
Artificial Intelligence Market Development
Perhaps even more telling is the projection that by 2026 more than 80 percent of finance functions are expected to be leveraging AI solutions.
The survey sheds light on the use cases of AI in finance:
- AI is being deployed to enhance forecasting accuracy and provide deeper insights into financial trends.
- Automation of routine tasks and improved accuracy in financial reporting are key benefits observed.
- AI algorithms are optimizing cash flow and working capital strategies.
- AI tools assist in risk assessment and anomaly detection during audits.
One of the more striking findings is that 72 percent of finance leaders report improved decision-making quality as a direct result of their AI use case implementation.
This statistic underscores AI's potential to streamline operations and enhance the strategic value of finance functions within large enterprise organizations.
However, the survey uncovered three key areas of concern:
- Data Quality and Availability: 51 percent of finance leaders cite this as a significant obstacle to AI implementation.
- Skills Gap: 48 percent report a lack of necessary skills within their teams to effectively leverage AI technologies.
- Ethical Considerations: As AI becomes prevalent, 42 percent of finance leaders express concern about the implications.
These challenges underscore the need for a holistic approach to AI adoption, encompassing technology implementation, data governance, talent development, and ethical frameworks.
Meanwhile, several growth trends and opportunities stand out:
- As AI tools become more user-friendly and accessible, we can expect to see wider adoption across finance teams of all sizes.
- Big data analytics will create more sophisticated forecasting models, enabling finance functions to provide strategic value.
- Beyond routine tasks, AI can tackle complex financial processes, freeing up human capital for more strategic initiatives.
- As concerns about AI grow, more robust policies and guidelines for responsible AI use in finance will surely emerge.
- Advanced AI algorithms will help to identify and mitigate financial risks, enhancing overall organizational resilience.
Outlook for AI Applications in Finance
"AI adoption in the finance function is advancing quickly," said Marco Steecker, senior director at Gartner. For finance leaders, embracing AI is no longer optional but essential for maintaining a competitive edge and driving strategic business value creation.
AI has the potential to improve finance functions. From enhancing decision-making quality to automating complex processes, AI is set to redefine the role of corporate finance within organizations.
That said, I believe those forward-thinking leaders who can effectively harness the power of AI investments to achieve their desired business outcomes will thrive in 2025.