How AI gives the financial industry an edge
Artificial intelligence (AI) is a game-changer for many industries to date, reshaping many sectors in their processes and business strategies. The financial industry is also one such sector that sees rapid transformation and growth through AI. With its integration into financial reporting, analysis and decision-making processes, AI offers unprecedented opportunities for efficiency, accuracy and innovation.
Unlocking AI’s potential in financial reporting
The immediate impact lies in automating repetitive tasks like data entry, reconciliation, and transaction analysis with exceptional speed and precision, not only accelerating reporting processes but also freeing up valuable time for finance professionals. This allows them to focus on higher-level analyses and insightful decisions that drive growth.
AI's ability to identify anomalies in massive datasets improves the accuracy and reliability of financial reports, strengthening trust in the reporting process. However, to fully maximise its value, collaboration among key stakeholders, including management, board members, internal audit, and IT is essential.
Discover more on our report, “Hot topic: AI in financial reporting processes”, to understand the capabilities, considerations and tips on integrating AI in financial operational aspects.
Leveraging Gen AI for competitive advantage
As AI evolves, advancements like generative AI (Gen AI) push the boundaries even further. Gen AI transcends automation, enabling organisations to generate new tailored content and perspectives to meet specific needs. Powered by machine learning and neural networks, Gen AI automates report generation, creates complex financial models, and provides deeper performance analysis, offering transformative capabilities that empower finance professionals to uncover valuable insights and make data-driven decisions with unprecedented precision.
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In our report, “How to elevate finance value through Generative AI, we highlight that incorporating Gen AI can yield substantial results. These include more than 90 percent of transaction processes getting automated, a 15 times faster financial close and planning cycles, and a 10-fold increase in time allocated to analytics and innovation.
Leading the AI transformation
Financial executives play a pivotal role in driving AI-driven transformation within their organisations. By championing AI as a tool for innovation and fostering a culture of continuous learning and collaboration, they can unlock AI’s full potential. This involves equipping the workforce with the necessary skills, such as digital fluency, deep learning and proficiency in AI ethics and governance.
As highlighted in the report, “Today's finance leaders: blazing the trail for Gen AI transformation”, industry leaders are instrumental in realising the benefits by ensuring effective implementation and fostering a supportive culture of AI adoption.
Ensuring trust in the digital age
Integrating AI, especially Gen AI, demands clear governance and robust controls to mitigate risks such as lack of transparency, data leaks, privacy concerns and misinformation. Prioritising data security is vital to safeguard the integrity of sensitive financial information. Comprehensive governance frameworks aligned with ethical guidelines and regulatory compliance are indispensable. Businesses must also develop a talent strategy to upskill the workforce for successful implementation.
By strategically capitalising on automation and Gen AI, financial leaders can gain a competitive edge in several areas. These include streamlined operations, enhanced decision-making through data-driven insights and achieving sustainable business transformation. For those in the financial industry seeking to thrive in today’s digital age, embracing AI and its applications will be a necessity. Get in touch with KPMG to find out how your organisation can harness the benefits of AI.