The adoption of artificial intelligence (AI) in finance has significantly increased, with 58% of finance functions utilizing the technology in 2024, a rise of 21 percentage points from the previous year, according to a Gartner survey conducted in June 2024.
Marco Steecker, senior director of Gartner's finance practice, noted, "AI adoption in the finance function is advancing quickly." The survey, which included responses from 121 finance leaders, revealed that two-thirds of them are more optimistic about AI's impact compared to a year ago.
Despite the growth, 19% of finance leaders reported no plans for AI implementation in 2024, down from 31% in 2023. Additionally, 21% are planning AI implementation, a decrease from 30% the previous year. However, 32% are developing AI pilots, up from 28% in 2023.
Among those already using AI, key applications include intelligent process automation (44%), anomaly and error detection (39%), and analytics (28%). AI is also being used to provide operational assistance in 27% of finance functions.
Challenges remain, with inadequate data quality and low data literacy being significant barriers to adoption. CFOs are urged to focus on understanding necessary roles and skills, attracting AI talent, and enhancing existing teams' capabilities.
In a related survey, Gartner found that at least 30% of generative AI projects may be abandoned after the proof of concept phase by the end of 2025, primarily due to poor data quality and unclear business value.
The rising costs of deploying generative AI projects, estimated between $5 million and $20 million, pose further challenges for organizations justifying these investments.