More Than Half of Organisations in Ireland Now Using AI Across Wider Finance Function

New research from KPMG reveals the extent to which artificial intelligence (AI) is being deployed in Irish organisations’ finance operations – with compelling levels of ROI and a wide range of benefits, including better data and decisions, lower costs, and greater ability to predict trends.

Over half of organisations in Ireland (54 per cent) are now using AI across their finance function, lower than the 71 per cent seen globally. Meanwhile, over two-thirds (66 per cent) are implementing some level of workflow automation in financial reporting. The report, titled “AI in finance”, covers 2,900 organisations across 23 countries and includes 100 responses from Ireland.

Commenting on the research findings, Keith Stafford, IT Audit Partner at KPMG in Ireland, said,

“Our research confirms AI is continuing to have a profound effect on how companies operate, including their systems, processes, controls, and governance over all areas of the finance function, and this is set to accelerate in the next few years.

AI will transform not only the technical aspects of financial operations but also fundamentally reshape strategic decision-making and risk management practices. The increasing adoption of AI reflects its critical role in driving efficiency, accuracy, and predictive capabilities, which are essential for staying competitive in an ever-evolving marketplace.

The integration of AI in financial services is not just a trend but a transformative shift. Our research highlights the significant strides companies are making in AI adoption, as well as the challenges they face. It is essential for organisations to invest in talent development and establish robust guidelines to harness the full potential of AI responsibly.”

AI Adoption Trends

The research indicates that AI adoption is most prevalent in Treasury Management, followed closely by Financial Planning, Accounting, Tax, and Operations and Risk Management. This trend underscores the growing adaptation of AI to streamline and enhance financial processes.

The research also finds two-thirds (66 per cent) of companies have implemented some level of automation in their financial reporting workflows. Additionally, 25 per cent of respondents plan to adopt automation in the near future. This shift towards automation reflects the industry’s commitment to improving efficiency and accuracy in financial reporting.

The top benefits of AI identified in the research include:

• Enabling better data-driven decisions (38 per cent)
• Lowering operational costs (37 per cent)
• Enhancing the ability to predict trends (36 per cent)

ROI of AI Initiatives and Investment

Almost half (49 per cent) of those surveyed reported that the return on investment (ROI) of their AI initiatives is meeting or exceeding expectations, compared to 65 per cent globally. This highlights the tangible benefits that AI brings to the financial services sector, encouraging further investment and innovation. AI is also now reported to account for nearly 15 per cent of the IT budget for businesses, with projections indicating that this figure is set to double within the next three years.

Challenges and Guidelines

Despite the promising trends, the research highlights limited AI skills and talent as the biggest barrier to AI adoption. Companies are facing challenges in finding and retaining skilled professionals who can effectively implement and manage AI technologies.

Nearly half (45 per cent) of the surveyed companies have established AI control guidelines to ensure the responsible use of AI. These guidelines are crucial in maintaining ethical standards and mitigating risks associated with AI deployment.

Finally, the study also reveals that companies are increasingly looking to auditors, in particular, to provide more communication and insights about AI. This demand for transparency and guidance emphasises the need for auditors to stay informed and proactive in their approach to AI-related matters.