In a survey conducted by Wolters Kluwer involving 181 finance leaders, findings showed that more than two-thirds of finance teams are still in the early stages of AI exploration. Only 9% of respondents reported making strides towards scaling AI projects, as many organisations are taking a cautious approach, aiming to understand how to best implement AI in ways that improve operational efficiency and decision-making processes.

Major technology players like Microsoft, Oracle, and Workday are leading the charge in developing AI-driven solutions for finance departments. Microsoft, for instance, has been integrating AI into its Dynamics 365 platform, offering new tools to help automate finance tasks and address key issues such as skills shortages and security concerns.

AI is no longer limited to automating routine tasks – it’s also being applied to more complex activities. According to the survey, 45% of CFOs are using AI for medium-impact functions like data visualisation. The confidence in generative AI’s future benefits has grown, with over 98% of CFOs predicting that it will speed up decision-making across industries within the next three years.

As competition among generative AI providers heats up, CFOs are likely to gain access to a broader array of tools to strengthen financial strategies. This technology is not only improving efficiency but also enhancing risk management, particularly in areas like fraud prevention, as CFOs look to AI as a vital tool in safeguarding their organisations against financial crime.

Perttu Nihti, CPO of Basware commented: “AI undoubtedly has an important role to play in the office of the CFO across areas such as fraud prevention, as an example, but barriers to adoption, including budget constraints, skills gaps and concerns over security, have held businesses back. As proof of concept and pilot scheme deliver ROI, it’s encouraging to see confidence growing among CFOs as AI use cases in finance start to ramp up.

“AI-powered automation can have a transformative impact on operations within the finance team, driving efficiency in areas including invoice management and financial reporting which are traditionally time-consuming tasks. By automating repetitive tasks and streamlining workflows, AI enables CFOs and finance teams to reclaim valuable hours every week, which can be redirected towards overarching strategic focuses, such as compliance.”

“Utilising AI for data analysis is a great entry point for investment, collating, and scaling vast amounts of data quickly to produce real-time insights, helping CFOs to make informed decisions faster and more accurately. This is particularly valuable when it comes to financial reporting, enabling CFOs and AP teams to pull live data and create reports far quicker than manual processing.”

A recent Gartner study revealed a shift in CFO attitudes toward AI. 66% of finance leaders expressed increased optimism about the potential business value of AI, compared to the previous year. Moreover, previous research published by Sage found that while 86% of organisations have embraced AI, only about half are actively utilizing AI-powered finance tools.

Jacqui Cartin, Executive Vice President and Group Financial Controller at Sage commented: “While many organisations see the broad benefits of AI, integrating it into specialised functions like finance requires a more targeted approach as well as perhaps overcoming additional barriers, such as skill gaps, budget constraints, or concerns about data security.”

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