AI in finance: a time to act

Felix Grevy at Kyriba explains how CFOs are using AI to evolve the financial landscape

 

Artificial Intelligence (AI) is revolutionising the financial landscape worldwide, and UK CFOs are at the forefront of its adoption. Our recent global CFO survey revealed that financial leaders in the UK are progressing faster in adopting advanced technologies than their global peers and are exploring strategic ways to implement such tools into their treasury and finance operations.

 

Despite the growing enthusiasm around the adoption of AI among finance leaders, the research revealed an evident “Trust Gap”; the divide between the opportunity of AI to transform the field, and the very real concerns over privacy and security. In the UK, 77% of CFOs identify this as the primary worry when implementing AI into their systems.

 

Due to worries over preventing data leaks, maintaining compliance, transparency in how AI models are trained and the integrity of highly sensitive financial information, many CFOs in the UK and globally are hesitant to unlock the full potential of AI. At the same time, the pressures to realise greater operational efficiencies, embrace new technologies for greater speed, and find a competitive edge are challenging many to proceed with caution.

 

So, how are the leaders using AI and in particular, agentic AI and how can they do so while bridging this trust gap? 

 

 

AI in strategic decision making

Previously, companies implemented AI in back-office functions to improve efficiency in operational tasks. However, CFOs are now looking to use it in high-level tasks like investment analysis and risk management, shifting its role from automation to strategic initiatives.

 

The research shows that the UK is leading AI adoption in fields like treasury and financial operations, demonstrating a clear intent from its CFOs to drive long-term growth. Embracing advanced technologies provide leaders with the flexibility needed to more efficiently respond to external factors such as market volatility, inflation, tariffs, and geopolitical risks. With 56% of CFOs in the UK already using AI to tackle such external factors, many are beginning to take advantage of the potential of AI.

 

However, there is room to grow, not only in others embracing the opportunity, but also ensuring finance leaders understand the potential for AI to do far more than simply automating routine tasks. Ultimately, AI can help deliver faster, more accurate insights that can improve decision-making, drive strategic growth and help position the office of the CFO as a profit centre. 

 

 

The CFO’s shifting role and skillset

As AI adoption accelerates across the organisation, CFOs believe that advanced technology will alter their roles and responsibilities. Our survey confirms that financial leaders (70%) expect that AI literacy will increasingly become a top requirement for their role. A strong command over AI and technology, and the ability to implement responsibly, will be essential to keep up with the rapidly evolving technological and economic environment. In order to stay competitive in the industry, organisations must prioritise AI-driven skills across the workforce, including within the C-suite.

 

As mentioned, the trust gap is real; CFOs are cautious about AI-specific risks, while also viewing security as a broader organisational challenge. The impact of such scepticism can be significant. Unresolved security and privacy issues could hamper organisations’ ability to fully leverage AI’s capabilities.

 

To bridge this divide, it’s important to establish trust through thorough and close coordination with IT leaders to implement stringent security protocols. CFOs must develop greater AI literacy and forge internal connections and external partnerships that instil trust in the tools and data being deployed. It is only by doing this that CFOs can confidently drive innovation and navigate the complexities of modern finance effectively.

 

It is critical for an AI agent solution in such environments to act with strictly defined data permissions and access rights. Regular audits, active monitoring, and maintaining human oversight, will be critical factors for adoption. Another critical aspect is data privacy, with guarantees that financial data of the customer will never be used for any training purposes.

 

AI is reshaping the future of finance, and UK leaders are among those set to spearhead this transformation. It’s important, though, to fully understand the challenges advanced technologies like AI may bring and ensure robust plans are in place to fully realise the benefits while avoiding undue risk. Only then can businesses gain a competitive advantage, setting a benchmark for trusted AI adoption worldwide.