KPMG: AI gains exceeding expectations in finance

AI is returning better gains in financial operations than expected, according to a new KPMG report.

While AI implantation in the sector is vast, the global professional services firm found that machine learning, deep learning and generative AI are proving to extract the most value.

Benefits include better data and decisions, fast insights and reporting, lower costs, and greater operational effectiveness.

Its research covered 2,900 organisations across 23 countries and builds upon a report earlier in the year that included 1,800 organisations in 10 countries.

It found that 71% of organisations are already using AI in their financial operations. Of these, 41% are using AI to a moderate or large degree, with this figure expected to rise to over 80% within three years.

The study classifies organisations into three AI readiness groups: leaders, implementers, and beginners.

Around a quarter of organisations are considered leaders, the most advanced adopters of AI—these companies are investing heavily in AI, with machine learning and generative AI becoming critical areas of development.

In fact, almost all (95%) of AI leaders expect to incorporate generative AI into financial reporting in the next three years.

The research also found that countries like the US, Germany and Japan are leading the way, while other countries including Italy and Spain are lagging. Plus, in emerging markets, China and India are ahead, while Saudi Arabia and several African nations are still catching up.

Industry-wise financial services are leading the pack (29% of firms are AI leaders), followed by sectors like healthcare (16%).

Larger organisations with revenues over $10 billion are also more likely to be AI leaders (41%).

David Rowlands, Global Head of AI at KPMG, said: “The benefits AI brings to finance teams—and the ROI it delivers—are undeniable. Businesses need to act now to stay competitive, as AI will continue to transform the industry.”

In terms of AI application, financial reporting remains the most widespread use case, with nearly two-thirds of organisations using AI in this area. Treasury and risk management is another key area, with AI improving functions such as fraud detection and cash-flow forecasting.

However, tax management remains slower to adopt AI, with only about one-third of firms piloting or using AI in this area.

AI leaders, who invest more significantly in AI resources and governance, report a higher ROI, with 57% saying that their AI investments are exceeding expectations. As AI technology matures, these leaders are reaping the greatest benefits, according to KPMG, positioning themselves for long-term success in an increasingly AI-driven financial landscape.

Rowlands added: “It’s hard to think of another business capability where reported levels of return are so high.

There are barriers and challenges to overcome, which is why businesses need to proceed with robust governance in place and a clear focus on the outcomes they’re looking to achieve – but the potential benefits are multiplying as we get further into a new era powered by AI.”