In only a few months, generative AI went from sci-fi-novelty to business game changer. In the “KPMG Generative AI Survey,” over three-quarters of top corporate leaders said generative AI is clearly a core technology they are considering for their business within the next 18 months.

According to a recent report from KPMG, “Why finance should lead the adoption of generative AI,” the finance function presents an interesting proving ground for companies looking to deploy generative AI. Finance can build the strategy that fully considers all the opportunities, risks and tradeoffs of adopting the new technology for the enterprise.

Pete Irwin, a Boston-based leader on KPMG’s Data, Analytics and AI team, commented, “Finance shows great promise as being ideally positioned to lead GenAI adoption in the corporate enterprise. It involves the kinds of tasks for which GenAI has demonstrated significant value, such as generating reports, analyzing data to spot anomalies and patterns, and checking the validity of data. Finance is also able to influence governance best practices, partnerships, and departmental use cases that will help other functions get up to speed quickly and avoid mistakes.”

According to the report, Finance function leaders surveyed expect GenAI to make a positive impact but are sensitive to the potential risks the technology introduces:

74% selected GenAI as having the biggest impact in the next 12-18 months, even though:

And 81% expect GenAI to have a high impact on their organization.

With all that promise, it's crucial to acknowledge hurdles such as security, reliability, safeguarding intellectual property and data protection. Successfully adopting GenAI requires a balanced approach combining urgency and risk awareness to build a truly trusted AI platform. The finance domain can lead by establishing an organizational framework is aligned with a company's risk tolerance, cultural intricacies and appetite for technology-driven change.

Because the finance function touches so many parts of the business, it makes sense for it to lead the organization in GenAI adoption. CFOs have already assumed broad oversight in strategy, enabling technologies and risk management. They bridge the front, middle and back offices, and they are stewards of enterprise data. Finance is also a function ripe with opportunities for GenAI, including:

That’s just a start. Once the organization is ready, GenAI solutions are relatively simple to deploy as more uses are identified. What’s important now, though, is getting started with the possibilities that exist today.

LeackStat 2023