The KPMG global AI in finance report, based on research updated in September 2024, highlights a rapid expansion of artificial intelligence across the global finance function. The report draws data from a survey of 2,900 companies across 23 developed and emerging markets.
Research Methodology and Scope
• Expansion of Research: KPMG conducted a follow-up study just six months after an initial April 2024 survey of 1,800 companies. The sample grew to 2,900 respondents and expanded from 10 major markets to 23 countries and territories across North America, Europe, ASPAC, Latin America, the Middle East, and Africa.
• Functional Scope: The research moved beyond financial reporting to include accounting, risk, tax operations, and treasury management.
AI Maturity Framework
KPMG categorized organizations into three maturity levels based on their progress and future plans for traditional and generative AI (Gen AI):
• Implementers (58%): The largest group, currently in the process of deploying AI.
• Leaders (24%): Advanced organizations that have integrated AI more widely.
• Beginners (18%): Organizations in the early stages of adoption.
Maturity by Category (Leaders only)
• By Revenue: 37% of companies with over $10 billion in revenue are Leaders, compared to only 9% of those under $5 billion.
• By Industry: Financial services (29%) and Consumer and retail (27%) have the highest percentage of Leaders; Healthcare and life sciences (16%) has the lowest.
• By Region: MEA (41%) and North America (27%) lead in maturity, while LATAM (7%) trails behind.
AI Usage and Adoption Trends
• Overall Adoption: 71% of companies are currently using AI in finance, with 41% using it to a moderate or large degree.
• Finance Area Adoption:
→ Accounting and Financial Planning: Nearly two-thirds of companies are piloting or using AI here.
→ Treasury and Risk Management: Nearly half of companies are piloting or using AI.
→ Tax Management: Less than one-third are currently using AI, with about half still in the planning stage.
• Generative AI: Over 40% of organizations are already piloting or using Gen AI in financial reporting. 95% of Leaders expect to be selectively or widely using Gen AI for reporting within three years.
• IT Budget Allocation: Companies currently spend an average of 8.5% of their IT budgets on AI, a figure expected to rise to 13.5% in three years. Leaders currently spend 12.5% and plan to increase this to 16.5%.
ROI and Benefits
• ROI Expectations: 57% of Leaders say ROI is beating expectations, while 30% of beginners report the same.
• Number of Benefits: Beginners typically see 2–3 benefits, while Leaders report an average of 7 benefits.
• Key Benefits: These include increased efficiency and accuracy, reduced human error, better data-based decision-making, lower costs, and improved regulatory compliance.
Top AI Use Cases in Finance
Leaders are significantly more active in diverse use cases than other firms:
• Research and data analysis: 85% (Leaders) vs. 46% (Others).
• Predictive analysis and planning: 81% (Leaders) vs. 46% (Others).
• Risk management and cybersecurity: 78% (Leaders) vs. 45% (Others).
• Generative AI for composing documents: 43% (Leaders) vs. 27% (Others).
Barriers and Risks
• Top 5 Barriers to Adoption:
1. Data security vulnerabilities (57%).
2. Limited AI skills and knowledge (53%).
3. Difficulty gathering consistent data (48%).
4. High implementation costs (45%).
5. Lack of transparency (40%).
• Blind Spots: Organizations prioritize privacy, data integrity, and security, but often overlook transparency and sustainability.
Auditor Expectations
Most organizations want their external auditors to use AI to enhance the audit experience. The top activities they want auditors to conduct with AI include:
• Data analysis: (Traditional: 66% | Gen AI: 54%)
• Risk mitigation: (Traditional: 57% | Gen AI: 53%)
• Risk identification: (Traditional: 55% | Gen AI: 51%)
• Fraud detection: (Traditional: 53% | Gen AI: 45%)
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