The financial sector is experiencing a tectonic shift. What used to be the domain of accountants and analysts is increasingly being controlled by artificial intelligence (AI). Algorithms are not only taking over routine tasks, but are evolving into strategic decision-makers that optimize liquidity flows, anticipate financial risks and help shape corporate strategies. CFOs are no longer just number crunchers – they are becoming AI architects who design and control digital financial systems.

The new KPMG study AI in Finance shows how far the transformation through artificial intelligence in finance has already progressed. 71% of the companies surveyed actively use AI in their financial processes, with a strong momentum towards Generative AI (GenAI), which not only optimizes processes, but also automates and transforms financial strategies (p. 8).

The study is based on a survey of 2,900 companies from 23 industrialized and emerging countries. It was first conducted in April 2024 and expanded in September 2024 to capture the rapidly growing importance of AI in the financial sector (p. 4).

Generative AI on the rise

Finance departments have long been characterized by rigid, history-based analyses. Now the playing field is turning: AI processes huge amounts of data in seconds and creates scenarios before analysts have formulated the first report. The result: faster, more precise and less risky decisions.

While companies have so far mainly used AI for data analysis and process automation, generative AI is beginning to establish itself among leading companies, particularly in financial reporting. Already 40 percent of AI leaders are actively using or testing GenAI in this area (p. 20). Among all companies, the proportion is even lower.

The momentum is unmistakable: 95 percent of AI Leaders plan to use GenAI extensively for financial reporting, while 39 percent of the remaining companies intend to take this step in the next three years (p. 20).

“AI financial agents with deep expertise will work together to solve some of our toughest problems and push the boundaries of what’s possible – and soon!“, explains David Rowlands, Global Head of AI at KPMG (p. 23).

Where algorithms have the greatest influence

The study shows that AI is finding its way into almost all areas of finance departments. It is used particularly intensively in accounting and financial planning, where two thirds of companies rely on automated data analysis and real-time forecasts (p. 8). AI is also increasingly being used in treasury and risk management, for example to optimize cash flow forecasts and detect fraud.

The economic benefits are considerable. 57 percent of companies with advanced AI use report that the return on investment (ROI) exceeds expectations (p. 14). Even companies that are only in the introductory phase often achieve higher returns than originally assumed.

When trust becomes the new currency

As much potential as AI holds, the challenges are just as great. Data security, transparency and a shortage of skilled workers are the biggest hurdles for companies. According to the study, 57% of companies consider data protection and cyber security to be the biggest risks (p. 16).

The “black box” problem of many AI models is even more critical. Algorithms make decisions that are often incomprehensible – a risk for compliance and regulatory requirements (p. 17). A Chief Audit Executive of a Brazilian industrial group describes this as a key weakness:

“There are no sources or links to validate the AI-generated data” (p. 17).

At the same time, there is a lack of qualified experts. More than half of companies complain that it is difficult to find AI specialists (p. 16). Companies must therefore invest massively in training and governance structures in parallel with AI integration.

Financial reporting 4.0

One area in which AI is having a particularly large impact is financial reporting. Today, 28% of companies use AI for reporting – in three years, this figure will rise to 83% (p. 19). The advantages are obvious: fewer errors, greater speed, more precise analyses.

However, the change brings with it new requirements. Auditors are increasingly being tasked with assessing governance structures and ensuring the reliability of AI-based financial reports (p. 20). Companies not only expect their auditors to assess AI, but also to use AI themselves in their auditing.

“Companies expect their auditors not only to understand AI, but also to use it themselves”, says Thomas Mackenzie, Global Audit Chief Technology Officer at KPMG (p. 20).

The time to act is now

The KPMG study clearly shows that AI is no longer a marginal phenomenon – it is fundamentally changing the world of finance. Companies that act now will not only secure competitive advantages, but also set the course for more efficient, strategic and risk-aware financial management.

But the introduction of AI is more than just a technical upgrade. It requires a rethink at management level, investment in specialists and a clear governance strategy. Those who actively shape this change will be among the winners of the algorithmic revolution.

“There is no doubt that AI is a game changer. CFOs and their teams should act now to prepare for the future “, emphasizes David Rowlands (p. 3).

The question is no longer whether AI will change finance – but how quickly companies are prepared to take the wheel.

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