Finance leaders approach AI with optimistic caution

Finance leaders are generally seen as cautious, especially when it comes to new technology. However, AI seems to be the exception that proves the rule. A recent study conducted by AccountsIQ for UK&I finance leaders found that they are convinced of AI’s potential. Research by SAP Concur agreed: 82% believed it would make business operations more efficient.

However, finance leaders are not blinded by the hype, and they have concerns about the technology. Research from Kyriba identified concerns about AI adoption among US CFOs. On the use of AI, CFOs saw the top three concerns as:

• Security/leaking of confidential information (54%)
• Accuracy (46%)
• Regulatory compliance (42%)

For UK&I finance leaders, AccountsIQ found that 66% are concerned AI adoption could reduce human oversight or control within their finance function over the next 12 months. That caution is translating into a caution for using AI for critical financial decisions without human validation. While Finance teams are using AI, they may not be realising its full potential or achieving the full return on investment.

For example, 64% stated they would be comfortable allowing AI to execute actions without human approval. However, this figure dropped to 41% when it came to forecasting.

Concerns over the use remain

Other concerns around the implementation of AI include the fact that regulation is still evolving, and compliance with emerging regulation is important but difficult to confirm until the regulatory landscape is more settled. 65% of respondents stated that compliance with current and emerging AI regulations is important when selecting finance software.

Another insight from the survey was that 53% of finance leaders said it is very important that AI-generated recommendations in finance software be explainable. The survey did not include any qualitative elements to indicate how explainable the insights were or what people wanted to understand about them. AccountsIQ believes the findings indicate that the use of AI within finance will increase efficiency, but trust in the technology remains a barrier.

Darren Cran, CEO of AccountsIQ said, “Finance professionals recognise the enormous potential of AI to reduce manual workloads and improve financial insight. However, accuracy, transparency and governance remain essential. AI must support finance professionals rather than replace them.” 

What does this mean for finance systems?

Cran believes the research means that AI solutions within finance need to be developed specifically for their audience. However, other research suggests that concerns in other functions are similar, though perhaps not as deep.

For finance teams, though, AI must:

• Enhance decision-making rather than replace it
• Augment humans rather than replace them, with humans in the loop
• Solutions should be transparent and explainable
• AI should include clear audit trails for later review

Ultimately, AI has a place in finance; it will help automate many of the routine processes, enabling finance teams to focus on higher-value analysis and strategic decision-making, according to AccountsIQ.

Enterprise Times: What does this mean

There is no report from this survey, and AccountsIQ did not provide the full data set for a deeper analysis. Expect more insights from the survey in the coming week. For AccountsIQ, the findings will be interesting and help align how it develops and pitches the AI elements within its software. Ultimately, AI-powered finance software can automate, but must not be fully autonomous. It must offer transparency into compliance and be explainable.

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