Australian companies’ use of AI in their finance functions is growing steadily - and the Return on Investment (ROI) on AI is exceeding, or at least meeting, expectations, a KPMG International study has found. And a quarter of Australian and overseas organisations are planning to increase AI budgets to overcome known barriers to its adoption.
The KPMG global AI in finance report - a survey of 2,900 organisations across 23 countries, including 100 in Australia - found that 72% in both Australia and internationally were now using AI in some form in their finance operations. In this country, 35% were using it to a ‘moderate to large’ degree while this was the case for 41% of overseas companies.
44% of Australian respondents (42% globally) said they were piloting AI in financial reporting, with 26% (24% globally) using it selectively. Over the next 3 years, 61% of Australian companies and 52% overseas said they would be using it selectively.
Accounting and financial reporting was the most common usage area – with tax further behind, along with risk and treasury operations.
In terms of ROI, 42% of Australian and 36% of global companies said it was meeting their expectations, while 20% of domestic and 25% of overseas organisations said their expectations were being exceeded. 13% of Australian companies and 11% globally said ROI was lower than they had hoped.
Nikki Stone, KPMG Audit Technology and Innovation Director, said:
“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 organizations are finding real value from the use of AI. 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.”
