3 in 4 Firms to Boost AI investment for Data-Driven Financial Strategies: ACCA Report
Human oversight and experience are as critical as technology in adopting AI in the finance function
National, September 27, 2024: Artificial intelligence (AI) is rapidly becoming a cornerstone of financial strategies, with 75% of businesses, from SMEs to large corporations, planning to increase their AI investments, according to ACCA’s (Association of Chartered Certified Accountants) Smart Alliance: Accounting Expertise Meets Machine Intelligence report. This surge in AI investment is not only reshaping business processes but also transforming the role of accountants.
The report further reveals that 56% of accountants serve in advisory roles, with 20% taking full ownership of AI initiatives, solidifying their role as strategic leaders in the AI-driven transformation of businesses. This growing involvement is backed by significant financial commitments, particularly among large organizations. Among companies with revenues exceeding $1 billion, more than a quarter have invested over half a million dollars in AI projects in the past year alone.
Smart alliance author Alistair Brisbourne, head of technology research, ACCA, said: ‘The survey revealed that three-quarters of all respondents are expecting to increase their AI investments in the coming year (see chart). This surge in commitment is not merely about keeping pace with technological trends; it reflects a growing recognition of AI's potential to drive real business value in the accounting sphere.’
The survey confirms AI is a tool to enhance the skills of accounting professionals rather than replace them. AI in accounting and assurance is about reimagining roles of finance professionals focussed on analysis and interpretation, strategy, and high-level decision-making.
AI is about leveraging data in innovative and powerful ways to enhance decision-making and streamline processes through the application of tools such as machine learning (ML), computer vision (CV) natural language processing (NLP) and generative AI (GenAI).
Based on interviews and a survey of more than 900 accounting leaders who are already using AI, the report provides insights into strategic approaches, challenges, the risks – including ethical questions – and the outlook for AI in the profession. The survey reveals a widespread acceptance the finance function can be improved by AI, belying the stereotype of a conservative profession.
However the survey also found AI adoption is not uniform: over 40% of large corporates are using AI for data analysis and reporting, fewer than 30% of sole practitioners and small or medium-sized practices (SMPs) have done so.
The survey also reveals different sectors are focussing on different uses with organisations pursuing several outcomes through AI initiatives, including include improving the quality of products and services, boosting efficiency of existing processes, upskilling employees, expanding organisational capabilities, enhancing decision-making, driving competitive advantage, and reducing operational costs. (see chart)
As data becomes central to organisational success, finance departments are well placed to foster cross-functional collaboration, bridge the gap between organisational strategy and day-to-day operations, and ensure AI initiatives align with business objectives. (See chart)
Smart alliance serves as a crucial resource for accounting and finance professionals. It contributes to ACCA’s work on the evolution of the finance function.
Alistair Brisbourne, said: ‘The future of AI in accounting appears both exciting and transformative. Our survey data, coupled with insights from industry leaders, paints a picture of a profession on the cusp of significant change – driven by advancing AI technologies and evolving business needs.’
