Basware: CFOs Ramp Up AI To Cut Fraud, With Over Two-thirds Viewing It As Essential For Finance Departments

AI adoption in corporate finance is gaining momentum, with 68% of CFOs identifying AI as crucial for financial reporting.

A survey by Wolters Kluwer asked 181 finance leaders questions around AI adoption within the office of the CFO, and discovered that over two-thirds of finance teams remain in the exploratory stage of AI implementation. Only 9% have initiated efforts to scale AI projects, as many organizations cautiously learn how to effectively integrate AI into their finance functions to enhance operations and decision-making.

Leading tech firms, including Microsoft, Oracle, and Workday, are at the forefront of this AI revolution, rolling out innovative tools designed to automate finance tasks and address challenges like skill gaps and security concerns. Microsoft is actively embedding AI across its Dynamics 365 enterprise resource planning platform, enhancing its functionality for finance departments.

AI is shifting from routine tasks to higher-impact roles, with 45% of CFOs using it for medium-impact activities, such as data visualization. Moreover, optimism about generative AI’s future benefits has surged, with over 98% of CFOs expecting it to accelerate decision-making in their industries over the next three years. 

As generative AI providers compete for corporate contracts, CFOs are likely to gain more options, enhancing their strategies to address financial challenges and improve risk management, including fraud prevention.

This change is paving the way for stronger fraud prevention strategies, as CFOs use AI not just to boost efficiency but also to protect their organizations from financial crime.

Perttu Nihti, CPO of Basware commented: “AI undoubtedly has an important role to play in the office of the CFO across areas such as fraud prevention, as an example, but barriers to adoption, including budget constraints, skills gaps and concerns over security, have held businesses back. As proof of concept and pilot scheme deliver ROI, it’s encouraging to see confidence growing among CFOs as AI use cases in finance start to ramp up.”

“AI-powered automation can have a transformative impact on operations within the finance team, driving efficiency in areas including invoice management and financial reporting which are traditionally time-consuming tasks. By automating repetitive tasks and streamlining workflows, AI enables CFOs and finance teams to reclaim valuable hours every week, which can be redirected towards overarching strategic focuses, such as compliance.”

“Utilizing AI for data analysis is a great entry point for investment, collating and scaling vast amounts of data quickly to produce real-time insights, helping CFOs to make informed decisions faster and more accurately. This is particularly valuable when it comes to financial reporting, enabling CFOs and AP teams to pull live data and create reports far quicker than manual processing.”

A recent Gartner study revealed a shift in CFO attitudes toward AI. 66% of finance leaders expressed increased optimism about the potential business value of AI, compared to the previous year. Moreover, previous research published by Sage found that while 86% of organizations have embraced AI, only about half are actively utilizing AI-powered finance tools.

Jacqui Cartin, executive vice president and group financial controller at Sage commented: “While many organizations see the broad benefits of AI, integrating it into specialized functions like finance requires a more targeted approach as well as perhaps overcoming additional barriers, such as skill gaps, budget constraints, or concerns about data security,” Jacqui Cartin, executive vice president and group financial controller at Sage, said in an emailed response to questions.”