76% of firms use AI in finance, but governance remains key challenge

76% of organisations use AI in finance, but a KPMG report warns the competitive edge will require AI-centric operating models and strong governance. Challenges include a talent gap, with few firms hiring new profiles, and the need for data fluency.

Artificial intelligence (AI) has reached an inflection point in finance, with 76 per cent of organisations already using it in financial planning. However, while adoption is outpacing organisations' ability to scale AI across the enterprise, the next competitive edge will depend on building AI-centric finance operating models and robust governance frameworks, as per a report by KPMG.

The report highlighted that AI delivers its greatest value in finance by enhancing decision-making rather than reducing transaction costs. However, the biggest challenge is governance.

Workforce Transformation and Human Oversight Challenges

Noting, 76 per cent of organizations are actively leveraging AI in financial planning, it stressed, "Competitive advantage will increasingly belong to organizations that align their finance operating model around AI -- and can sustain that alignment as AI becomes more capable, more autonomous and more deeply embedded in everyday decision-making."

Furthermore, while many organisations are upskilling their existing workforce, only 28 per cent are reassessing the talent profiles needed for an AI-driven future. As a result, the gap between training employees to use AI tools and building an integrated human-AI workforce operating model remains unaddressed.

Notably, human oversight continues to be a critical part of this transition. "33 percent of organizations surveyed are increasing human-in-the-loop oversight as a direct response to AI-related concerns," it said. In finance, where regulatory scrutiny and professional judgement shape every output, human involvement in AI workflows produces more reliable results and builds the trust required to scale.

The report also found that very few organisations are adopting a total workforce approach. While 38 per cent are upskilling finance and internal audit teams for AI-enabled processes, only 28 per cent are hiring talent with new skill sets, indicating that most organisations are retraining existing employees rather than redesigning the workforce for an AI-driven future.

Data Fluency Identified as a Critical Capability

Apart from this, data fluency is becoming crucial for deploying AI in finance. "36 percent of organisations identify improving data quality, integration and system interoperability as their greatest opportunity to extract more value from AI in finance," KPMG said stressing, the real challenge is -- finance teams often not knowing "where to start."

"Data fluency is emerging as the most critical capability need: the ability to assess data quality, interpret outputs and communicate findings in terms the business can act on," it noted. (ANI)

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