Image: © lovelyday12/Stock.adobe.com
‘Focus on the implementations where you know you’ll get returns,’ advised Basware’s director of AI.
A global survey of 400 senior finance leaders has revealed that nearly half of them (48pc) warned that if AI does not demonstrate initial value within 12 months, it will be challenging to justify further investment. However, experts say that a clear strategy will help businesses benefit from AI implementation.
That’s according to a report released yesterday (13 November) by Basware, a Finnish accounts payable automation company. The company’s ‘AI to ROI’ report, which was conducted by Financial Times Longitude, also found that 75pc of chief financial officers (CFOs) want to increase their investments in AI within the next 12 to 18 months, but don’t know where to start.
In the report, many finance leaders highlighted the barriers slowing AI adoption, with 40pc citing change management challenges, while 33pc cited budget constraints. 31pc cited a lack of clear strategic vision for the future of the finance function.
In order to reap the benefits of AI, the accounts payable company advised leaders to develop a “clear vision,” and to see AI as a “transformative initiative”. The report encouraged leaders to implement AI in a targeted approach, by identifying specific challenges and how AI can effectively address those challenges, in order to obtain “meaningful and impactful” results.
While some CFOs are struggling to plot their AI investment and integration journeys, survey responses have highlighted the benefits of integrating the tech in specific applications.
The surveyed CFOs indicated that some issues that incur considerable costs to their businesses – such as inefficient processes, talent retention, inaccurate forecasting and fraudulent activity – have all seen improvement owing to AI implementation.
“The value is there in AI. Every day you wait, you are forgoing benefits,” said Jason Kurtz, Basware CEO.
Meanwhile, 82pc of the leaders reported increased revenue using AI tools, Basware said, while 86pc of finance leaders said deploying AI tools that support financial planning and analysis has generated significant returns. Almost as many (85pc), report that the use of AI in accounts payable has already started to pay off.
Anssi Ruokonen, the director of AI research and enablement at Basware, advised leaders to involve employees during the AI implementation process in the business and support them as “key AI users” – the report found that 65pc of leaders reported improved employee satisfaction since investing in AI.
Basware referenced a report from the consulting firm McKinsey, which found that 83pc of CFOs believe AI could help finance professionals reduce the time they spend on manual tasks, however not many have fully realised that ambition.
While since investing in AI, “almost all” the leaders surveyed by Basware have enjoyed reduced error rates and faster fraud detection, with 76pc experiencing reduced operational costs and 64pc highlighting increased process efficiency.
According to the report, 70pc of leaders reported that staff are demanding AI tools that will relieve the administrative burden while three-quarters added that deploying these tools has already given staff more freedom to focus on strategic work.
“Focus on the implementations where you know you’ll get returns,” advised Ruokonen.
Recent research has suggested that Ireland appears to be trailing behind in the implementation of AI. According to a recent KPMG report, only 24pc of Irish tech executives said their organisations deployed AI “at scale”, while micro firms in the country – firms that employ less than 10 employees – have shown to be less likely to embrace AI in their business.
Don’t miss out on the knowledge you need to succeed. Sign up for the Daily Brief, Silicon Republic’s digest of need-to-know sci-tech news.
