The realm of artificial intelligence (AI) burgeons with promise, yet a study by Gartner, Inc. unveils a stark lag in its embrace within the bastions of finance. Despite the technological enthusiasm that permeates leadership sentiment, a significant chasm exists between potential and practice.
The State of AI Deployment in Finance: A Reluctant Acceptance
In the mosaic of corporate functions, the finance sector notably trails its counterparts in integrating AI into its bloodstream. In June 2023, an inquiry into the stance of 130 finance chieftains and their 91 administrative comrades unearthed that a staggering 61% have not ventured into AI’s terrain, or are mere nascent in their plans. This pales in comparison to the 20% of their peers in realms such as HR and IT, who have already harnessed AI’s capabilities.
Marco Steecker, a sage Senior Principal at Gartner’s Finance Practice, observes that finance divisions remain enigmatic, their forays into AI sparing and tentative. He advises CFOs to seek harmony in strategy with their finance vanguards, examining the ledger of progress against their kin and extracting wisdom from the vanguard of AI adopters.
Foresight among finance leaders predicts an uptick in the resources funneled towards AI in the coming biennium, with over half expecting this surge to exceed 10%. Yet, the finance function’s ledger of AI investment is scarcely filled compared to other sectors.
Steecker points out a stark discrepancy in the realm of generative AI: a meager 1% of finance departments have welcomed or plan to invest in such technology. In stark contrast, customer-facing and IT functions display a robust 10-20% inclination towards this innovative AI branch.
AI’s Unrealized Potential in Finance: The Quest for Priority
A quartet of obstacles blocks AI’s path in finance: competing priorities, a dearth of technical prowess, data of questionable integrity, and a lack of compelling use cases. The latter three form a triptych of operational and capability constraints. Yet, the paramount hurdle is the web of existing priorities. Steecker elucidates that finance magnates often regard AI as an isolated undertaking rather than a catalyst for their overarching strategic endeavors.
A Spectrum of Impact: AI’s Footprint in Finance
Among the finance entities that have dabbled in AI’s waters—be it through pilot programs, production, or scaling—applications span a colorful spectrum. From augmenting accounting practices to pinpointing anomalies and enhancing financial scrutiny, AI’s utilization is as varied as it is potent. Steecker accentuates the predominantly favorable impact of AI, heralding it as a beacon for finance leaders contemplating where to channel their inaugural AI investments.
