The AI-volution of innovation

Welcome to KPMG Insights, a monthly newsletter capturing the top business trends and insights you might have missed this month.

In April, the focus turns to innovation and artificial intelligence (AI) as organisations embrace the integration of Gen AI (Generative AI) in finance, unpack the implications of the upcoming EU AI Act for responsible development and capitalise on the synergy of AI and the Internet of Things (IoT) to unlock new possibilities.                                             

This issue explores how organisations leverage cutting-edge advancements for progress while navigating regulatory complexities.

Driving innovation with Gen AI

Gen AI is reshaping finance, offering automation, advanced modelling and deeper insights. Yet, successful integration requires addressing risks such as data privacy and ethical concerns. Adopting responsible AI practices and robust governance frameworks is crucial to ensuring trust and transparency.

While only 57 percent of respondents from the KPMG 2023 Global Technology Survey believe Gen AI will be critical in the short term, early movers can gain a significant advantage. Strategically aligning Gen AI with existing finance transformation initiatives can unlock AI's full potential for innovation, operational optimisation, and sustainable growth.

Learn how to effectively and responsibly incorporate Gen AI in the finance functions in the report, ‘How to elevate finance value through Generative AI’.

Embracing responsible innovation with the EU AI Act

AI holds immense potential for businesses, but ethical concerns and risks necessitate regulatory action.

The proposed European Union (EU) AI Act, anticipated to become law in 2024 with compliance expected by 2026, employs a risk-based approach to safeguard fundamental rights and environmental sustainability. This encourages the development of trusted, transparent AI solutions, fostering an environment conducive to innovation.

To facilitate a smooth transition, organisations should proactively map and categorise their AI systems according to the Act's risk levels.

Prepare for regulatory changes by exploring the report, "Decoding the EU Artificial Intelligence Act", and work with KPMG for a tailored transformation.        

Fuelling innovation with AI+IoT

The convergence of AI and the Internet of Things (IoT) is rapidly revolutionising businesses with increased accessibility of AI tools and specialised hardware. By analysing massive data from connected devices, AI empowers businesses to optimise operations, personalise experiences and make data-driven decisions. Gen AI further enhances this by creating new content and refining sensor data.

As businesses embrace AI+IoT, the focus shifts towards integrating these technologies across all levels (vertical integration) and processing data closer to its source (edge computing) for even greater efficiency and innovation.

Discover the full potential of AI+IoT in the report, "Believe the hype".