- Almost half of CFOs Deloitte surveyed – 42% said their companies are experimenting with generative AI.
- Nearly two-thirds of CFOs reported less than 1% of next year’s budget will be spent on GenAI.
- Limited talent and technology resources may pose a challenge when adopting GenAI, CFOs said.
According to Deloitte’s recent CFO Signals survey, a whopping 42% of chief financial officers (CFOs) are actively looking into how GenAI can benefit their organizations. This not only shows the growing interest in GenAI but also its potential to change the financial landscape.
The Emergence of Generative AI in Finance
Generative AI, or GenAI, is a type of artificial intelligence that uses complex machine learning algorithms to produce results based on lots of training data. What makes GenAI exciting for financial institutions is its versatility. Among the companies experimenting with GenAI, 52% of CFOs are interested in using it to cut operational costs, while another 50% are excited about improving the customer experience.
Budgeting Wisely for GenAI
Despite the enthusiasm for GenAI, most organizations are being cautious with their budgets. Deloitte’s survey shows that nearly two-thirds (63%) of CFOs plan to allocate less than 1% of their budget to GenAI initiatives in the upcoming year. In contrast, one-third of CFOs are willing to dedicate a bit more, ranging from 1% to 5% of their budget, for GenAI exploration.
Challenges on the Horizon
While GenAI has great potential, it’s not without its challenges. CFOs have identified a few roadblocks that could make it tricky to integrate GenAI smoothly into financial operations. The top concerns include a shortage of talent and technology resources, with 63% of CFOs highlighting talent as the main hurdle. This underscores the need for organizations to invest in developing the skills required to make the most of GenAI. Additionally, 49% of CFOs are worried about data and technology resources, stressing the importance of having a strong infrastructure. Furthermore, 45% are concerned about risks and governance, emphasizing the need for comprehensive risk management strategies.
GenAI is becoming a major disruptor, with a significant number of CFOs recognizing its potential and actively exploring its uses. As organizations move toward GenAI adoption, a balanced approach to budgeting and a proactive stance on addressing challenges will be crucial for reaping the benefits of this game-changing technology. The future of finance is undoubtedly tied to the rise of Generative Artificial Intelligence, and those who embrace it strategically are set to lead the way in this era of innovation.