Finance functions see uptick in AI integration: KPMG
The use of artificial intelligence in Australian companies has steadily increased, with 35 per cent using it in some form in their finance operations.
Recent research by KPMG has found that Australian companies' use of AI in their finance functions is on the rise and the return on investment (ROI) on AI is meeting or exceeding expectations.
The KPMG international study also found that one-quarter of Australian and overseas organisations were planning to increase AI budgets to overcome known barriers to its adoption.
The report, KPMG Global AI in finance report, consisted of 2,900 organisations across 23 countries which included 100 in Australia.
According to the survey results, 72 per cent of companies in Australia and internationally were using AI in some form in their finance operations, with 35 per cent of Australian companies using it to a moderate to large degree.
KPMG audit technology and innovation director, Nikki Stone, said the ROI benefits from AI had met and exceeded expectations.
“The survey reflects what we are seeing in the market – that usage of AI in finance departments is growing fast, with ROI benefits exceeding respondents’ expectations, showing that organisations are finding real value from the use of AI,” she said.
“It is especially encouraging to see that leaders in the AI space are prioritising the responsible use of AI and AI governance, to address the potential harms of AI use as they realise these benefits.”
The survey results highlighted that 44 per cent of Australian respondents had piloted the use of AI in financial reporting and 26 per cent had begun using it selectively.
Over the next three years, 61 per cent of Australian companies said they were set to begin the integration of AI in financial functions selectively.
Forty-two per cent of Australian companies said the ROI on AI was meeting their expectations and 20 per cent revealed it had exceeded their expectations. Only 13 per cent of Australian companies said ROI was lower than they had anticipated.
Companies had turned to AI in most areas of corporate finance such as reporting, accounting and financial planning, according to the study.
Accounting and financial reporting were outlined as the most common and frequent usage areas, followed by tax, risk and treasury operations.
In terms of tax management, only 37 per cent had piloted or had begun selectively using AI in the planning stage. Twenty-two per cent of Australian companies revealed they had no plans to introduce AI processes for tax.
KPMG chief technology officer for tax, David Sofrà, said a change in the AI tax landscape was beginning to be reflected.
“AI usage in tax functions is growing steadily but may still be further behind other finance functions for a variety of reasons, including the complexity of tax regulations, a lack of up-to-date data, onerous legacy systems and the reliance on human judgement for many tax-related decisions,” Sofrà said.
“Six months ago, tax leaders were approaching AI tentatively – this is changing with usage growing and many exploring the opportunities it offers, whilst also balancing this with the risks and challenges it presents in a highly complicated tax landscape.”
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