{"id":21849,"date":"2024-05-13T22:52:57","date_gmt":"2024-05-13T22:52:57","guid":{"rendered":"https:\/\/www.insurance-canada.ca\/?p=80765"},"modified":"2024-05-13T22:52:57","modified_gmt":"2024-05-13T22:52:57","slug":"executives-bullish-on-genai-in-finance-and-accounting-despite-low-adoption-rates","status":"publish","type":"post","link":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/2024\/05\/13\/executives-bullish-on-genai-in-finance-and-accounting-despite-low-adoption-rates\/","title":{"rendered":"Executives Bullish on GenAI in Finance and Accounting, Despite Low Adoption Rates"},"content":{"rendered":"

New York, NY (May 8, 2024) \u2013 Could 2024 be the year that Generative artificial intelligence (AI) sees accelerated adoption within finance and accounting? According to a Deloitte Center for Controllership\u2122 poll<\/a>, even though few executives (6.6%) say their organizations have already implemented Generative AI solutions to support finance and accounting processes, considerably more indicate they are actively discussing use cases (15.4%) or have future plans to adopt the technology (27.8%).<\/p>\n

Looking at the next 12 months, responding executives say that cash flow forecasting (23.7%) presents the biggest opportunity for Generative AI within their organization\u2019s finance and accounting function, followed closely by scenario planning (21.1%), expense reporting (18.1%) and financial controls management (14.1%).<\/p>\n

\u201cJust as in any industry, there are areas within accounting and finance that could be ripe for Generative AI experimentation,\u201d said Court Watson, a Deloitte Risk & Financial Advisory, Deloitte & Touche LLP, who specializes in AI use within controllership functions. \u201cProcesses that depend on estimations for which organizations have robust, algorithm-ready data sets \u2014 such as cash flow forecasting and scenario planning \u2014 might be ideal areas for finance and accounting teams to begin testing Generative AI use.\u201d<\/p>\n

Data, which is the main input for Generative AI models, is the single greatest pain point according to respondents. Nearly one-quarter (24.4%) of polled executives say that enhancements to data quality would improve their trust levels in Generative AI tools.<\/p>\n

\u201cAcross the board, we continue to hear from organizations that the lack of clean, model-ready data is a significant challenge to incorporating Generative AI into finance and accounting workstreams. Implementing a robust data strategy and process to prepare finance and accounting data for use within Generative AI models \u2014 as well as with automation and other technologies \u2014 is a crucial first step to help organizations truly reach actionable insights and outcomes,\u201d said Watson.<\/p>\n

As interest in Generative AI solutions within finance and accounting grows, so are considerations concerning the technology\u2019s implications on governance strategies. More than one-third of polled leaders (38.7%) say that their organization already has or will have a Generative AI strategy \u2014 protocols to guide its adoption and use \u2014 in place for finance and accounting within the next 12 months. Yet, a similar number (39%) report no future plans to develop a strategy.<\/p>\n

Dave Stahler, a Deloitte Risk & Financial Advisory partner and controllership digital finance leader, Deloitte & Touche LLP, added, \u201cGenerative AI is expected to transform finance and accounting processes, inclusive of actual financials, making governance a significant piece of the puzzle. Treating AI governance like any other finance transformation effort will be key to bringing the technology safely into an organization\u2019s finance operations. For many, that will mean taking an enterprise-wide approach that includes a well-governed data strategy, accuracy and reliability safeguards, alignment with financial regulations and standards, close strategic collaboration across business functions and \u2014 critically \u2014 management support.\u201d<\/p>\n

About the Poll<\/b><\/h4>\n

Over 1,430 C-suite and other executives were polled during a Deloitte Center for Controllership<\/a> webcast, titled \u201cA new frontier: Exploring artificial intelligence in finance<\/a>,\u201d on October 26, 2023. Answer rates differed by question.<\/p>\n

About Deloitte<\/b><\/h4>\n

Deloitte provides industry-leading audit, consulting, tax and advisory services to many of the world\u2019s most admired brands, including nearly 90% of the Fortune 500\u00ae and more than 8,500 U.S.-based private companies. At Deloitte, we strive to live our purpose of making an impact that matters by creating trust and confidence in a more equitable society. We leverage our unique blend of business acumen, command of technology, and strategic technology alliances to advise our clients across industries as they build their future Deloitte is proud to be part of the largest global professional services network serving our clients in the markets that are most important to them. Building on more than 175 years of service, our network of member firms spans more than 150 countries and territories. Learn more at www.deloitte.com<\/a>.<\/p>\n

SOURCE: Deloitte<\/i><\/p>\n

Tags: Artificial Intelligence (AI)<\/a>, Deloitte<\/a>, survey<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

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