**London**: A new report reveals that over 80% of CFOs in large organisations are utilising or considering AI to enhance financial operations, particularly in accounts payable. Despite challenges such as integration hurdles and implementation costs, the appetite for AI solutions in finance continues to grow.
The growing integration of artificial intelligence (AI) into financial operations is significantly impacting how companies manage their accounts payable, a process essential for maintaining supplier and contractor relationships. This development is explored in detail in a forthcoming report titled “Smart Spending: How AI is Transforming Financial Decision Making,” a collaborative effort between PYMNTS Intelligence and Coupa set to be published on April 11.
The report identifies a trend among Chief Financial Officers (CFOs) in large organisations, revealing that over 80% are either actively using AI or considering its implementation for streamlining core financial functions related to accounts payable. This trend is especially prevalent within firms generating more than $10 billion in annual revenue, with around 75% of such companies already utilising AI in their financial processes.
AI is being recognised for its ability to optimise payment terms and enhance working capital management. By improving visibility into an organisation’s financial status, AI can enable more informed spending decisions. More than two-thirds of enterprise CFOs surveyed have expressed a willingness to invest in AI solutions that provide real-time insights into expenditures.
While the benefits of AI in accounts payable include improved operational efficiency, reduced payment errors, and strengthened vendor relationships, the transition to AI-enabled systems is not without challenges. The report outlines that nearly two-thirds of CFOs have encountered difficulties in ensuring that disparate systems work in unison. Moreover, the limited customisation capabilities of some AI tools complicate their adaptation to specific business needs. Upfront implementation costs present another hurdle, particularly for service-based businesses, while those with complex, multi-regional operations may struggle with varying local regulations.
Concerns regarding the consistency and replicability of AI-generated outcomes within the technology sector may further undermine trust in automated decision-making processes. Nonetheless, despite these challenges, there is a noticeable appetite for AI solutions in financial management. Many CFOs show a readiness to invest in AI tools that facilitate vendor negotiations, budget optimisation, fraud detection, and predictive analytics.
The inclination towards AI highlights a significant shift in financial management philosophies, showcasing a growing acknowledgment among executives of the technology’s potential to revolutionise these operations and foster a competitive advantage. The report encapsulates this burgeoning interest, indicating that as more companies embrace AI, the landscape of financial management is poised for transformative change.
Source: Noah Wire Services
Subscribe to Industry Updates
