AI’s transformative power has extended beyond the realm of science fiction, firmly establishing itself in workplaces across various industries. With the emergence of AI, CFOs must carefully evaluate its potential impact on the finance sector. Deloitte’s 2024 CFO Sentiment report reveals intriguing insights from Australia’s financial leaders. Nearly 82% recognize GenAI’s transformative potential in Finance, yet only 12% have implemented pilot programs.
CFO Focus and Challenges
A significant 60% of CFOs prioritize cost control initiatives. Despite acknowledging GenAI’s efficiency improvements, concerns about data and cyber risks and confusion about where to start impede investment. This leaves many wondering whether to wait for major providers to include AI functionality in finance tools or to develop in-house solutions.
Generative AI in Finance Functions
Strategist
Generative AI enhances financial planning and analysis (FP&A). Predictive models enable advanced scenario analysis, empowering strategic decision-making.
Operator
Automation of transactional processes such as reconciliations and journal entries transforms finance operations. This leads to increased operational efficiency.
Catalyst and Steward
Efficiency in reporting improves through automated draft report generation. Continuous monitoring and anomaly detection enhance financial controls, boosting overall effectiveness.
For more details, visit the Finance AITM Dossier from Deloitte AI Institute.
Challenges with GenAI Adoption
Data Challenges
Around 43% cite data management and cybersecurity as significant risks. The Tech Trends 2024 report advises improving AI fluency and setting up governance frameworks.
Technology Implementation
Approximately 33% report challenges in implementation. Successful GenAI deployment requires a robust, compatible technology environment to mitigate risks in governance and data management.
Talent Acquisition
Finding skilled talent with both functional and technical expertise, cited by 44% of CFOs, is a key barrier. Worker trust in AI also remains an area for development, as noted by Deloitte AI Institute’s State of Generative AI (2024 Q2).
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