In late 2024, a report from KPMG highlighted the transformative impact of artificial intelligence (AI) on financial operations. According to the findings, more than half of U.S. companies have integrated AI into their finance functions to varying extents, with significant emphasis on generative AI for tasks like financial reporting. The study revealed that 92% of these firms are achieving or surpassing their expected returns on investment in AI initiatives. Moreover, a third of these organizations plan to boost their AI budgets, signaling a strong commitment to further digital transformation. Key figures in the industry emphasize that AI is not only improving operational efficiencies but also reshaping various sectors, including accounting, financial planning, and risk management.
The integration of AI into financial processes has been gaining momentum over the past few years. Scott Flynn, Vice Chair of Audit at KPMG, noted that this technology is becoming pervasive across multiple financial domains. Companies are witnessing tangible benefits as they incorporate AI into their reporting procedures. The report forecasts that within three years, all U.S. finance leaders will either be piloting or actively using AI in financial reporting. Richard Entrup, a senior advisor at KPMG’s Enterprise Innovation team, pointed out that November 2022 marked a turning point for AI when ChatGPT was introduced. This development democratized AI, making it accessible to businesses of all sizes through natural language processing.
Entrup emphasized that AI's potential to leverage data for improved enterprise efficiency and competitiveness is unparalleled. He stressed the importance of structuring data properly within a trusted framework to maximize AI's benefits. The rapid pace of change in AI adoption is unprecedented, he added, comparing it favorably to previous technological revolutions like the internet and smartphones. Looking ahead, Entrup believes AI will significantly influence fields such as quantum computing, virtual reality headsets, smart glasses for surgeons, advanced avatars, robotics, and computer chip design. These innovations promise to revolutionize industries by enhancing capabilities and providing new business opportunities.
Consumers stand to benefit from AI advancements as well. Features like co-pilot functionality on computers allow users to interact more naturally with technology, simplifying daily tasks both professionally and personally. Entrup urged organizations to define clear business goals and explore how AI can enhance their operations. From accounting to tax and audit, AI promises to deliver faster, cheaper, and more accurate results. However, retaining top talent remains a challenge, with many professionals drawn to big tech companies. In regions like New Jersey, major pharmaceutical and biotech firms are leveraging machine learning for drug development and integrating AI across departments to engage clients and retain employees. Entrup concluded that any company ignoring the potential of generative AI risks falling behind in today's competitive landscape.