caalley logo

The alley for Indian Chartered Accountants

Machine Learning, Deep Learning, Gen AI Offer Most Value In Finance: KPMG Report

Dec 9, 2024

Among emerging markets, India and China are ahead in AI usage.

Organisations are increasingly deploying artificial intelligence in finance operations, realising return on investments and benefits like better data and decisions, faster insights and reporting, lower costs and operational effectiveness, a KPMG report shows.

According to the report, although investments are being made across a range of AI technologies, organisations are extracting the most value from machine learning, deep learning, and generative AI. The RoI from these technologies is either meeting or exceeding expectations.

The research covered 2,900 organisations across 23 countries. KPMG identified a cohort of leaders who were more advanced and mature in AI deployment. Around 24% of organisations were Leaders, while 58% were middle ground Implementers, and 18% beginners.

Over seven in 10 (71%) organisations are using AI to some degree in their financial operations. Currently, 41% are using AI to a moderate or large degree, and this is predicted to rise to 83% over the next three years.

The use of gen AI has also grown. The percentage of companies with no intention to use gen AI has fallen from 6% to 1% now. Gen AI has become a key focus and a top priority for the future, with 95% of Leaders and 39% of others expecting to adopt it within financial reporting in the next three years.

Among emerging markets, India and China are ahead in AI usage. Most sectors have a similar percentage of leaders, although financial services leads (29%), while healthcare lags behind (16%). Additionally, companies with larger revenue sizes are more AI-advanced.

Under corporate finance, AI is being deployed most in financial reporting, with nearly two-thirds of companies piloting or using AI for reporting, accounting and financial planning. Nearly half of companies are also piloting or using AI for treasury and risk management. This has the potential to generate better debt management, cash-flow forecasting, fraud detection, credit risk assessment, and scenario analysis in the treasury and risk management functions.

[NDTV Profit]

Read more on:
Don't miss an update!
Subscribe to our newsletter