AI has rapidly transitioned from being a buzzword to becoming a cornerstone technology in the business world. In finance, it holds immense promise for enhancing efficiency, improving decision-making and addressing critical challenges. However, as our research at BARC reveals, while companies recognize AI’s potential, many are still struggling to turn that potential into measurable benefits.

This blog post is based on the results of a BARC research survey conducted in the second half of 2024. It summarizes key insights and provides actionable recommendations for organizations aiming to leverage AI in their finance functions.

Hot Spots and Key Findings: Unlocking AI’s Potential

AI is the trend of our time. Many companies are evaluating how it can create benefits and added value, especially in finance. Lack of resources and expertise are key challenges to overcome. However, the fact is that many of the companies already using AI are reaping the rewards and achieving measurable benefits. There are three critical themes that define the current state of AI adoption in finance:

Hot Spot 1: The Missing AI Strategy

More than one third of companies lack a clear AI strategy, and only 10% include finance as a central part of their plans. This gap is especially pronounced among small and mid-sized enterprises, where organizations often struggle to define how, why and in what context AI should be deployed.

Finance and controlling are ideal domains for AI applications, offering opportunities to automate manual tasks, generate insights and support innovation through predictive algorithms and machine learning (ML). Leading organizations – those rating their AI capabilities higher than their peers – are more likely to integrate finance into their AI strategy (over 50% ), while laggards do so in just under 30% of cases.

A robust AI strategy requires balancing three key pillars: business, technology and organization. From a business perspective, defining specific use cases and measurable benefits is essential. Technological support, including a suitable data architecture, is critical to unlock value. On the organizational side, clearly defined roles, processes and governance frameworks ensure safe, ethical and efficient AI adoption. Without this alignment, companies risk missing out on AI’s potential to transform finance functions.

Hot Spot 2: Challenges with Resources and Expertise

For 48% of companies, the biggest barrier to adopting AI is a lack of resources and expertise. This challenge is particularly acute for laggards, who often lack the foundation needed to take even the first steps toward AI implementation.

The problem isn’t primarily technological – only 27% cite insufficient technology support as a key issue. Instead, fundamental obstacles such as inadequate data architecture (34%), low data quality (33%) and difficulty identifying use cases (34%) are more common. These gaps prevent organizations from piloting AI projects and evaluating their benefits effectively.

Competing priorities, such as rising costs and regulatory pressures (e.g. ESG compliance), further complicate AI adoption for many organizations. Heightened risk management needs also consume much of the CFO’s attention, leaving little bandwidth for AI initiatives. Management’s lack of prioritization for AI (33%) further compounds the problem, stalling progress across departments.

Governance is another emerging challenge. As regulations like the EU AI Act take shape, companies are recognizing the importance of establishing frameworks for safe and ethical AI use. In fact, 38% of respondents cited governance as a key concern, underscoring the need for clear standards and accountability to ensure compliance and build trust in AI systems.

Hot Spot 3: High Expectations for AI’s Impact

Despite the challenges, confidence in AI’s potential remains remarkably high. An overwhelming 98% of companies believe AI will help solve key business challenges in the future. For finance and controlling, planning and forecasting are seen as particularly promising areas for AI-driven innovation.

AI can significantly reduce manual workloads, with 63% of respondents identifying task automation as a priority. By automating routine processes, finance professionals can redirect their time toward value-added activities like scenario analysis, risk assessment and data-driven decision-making. Improved planning accuracy is another benefit, with AI enabling the integration of larger, more diverse data sets (51%) to generate better forecasts.

Beyond automation, companies expect AI to enhance decision-making by delivering faster, more insightful analytics. Half of the respondents (50%) aim to accelerate the delivery of data to decision-makers, while 47% see deeper analytical insights as a key benefit. Yet only 13% expect AI to enhance resilience to economic volatility, revealing a gap in strategic AI deployment.

In planning and forecasting, AI is already addressing critical pain points such as inconsistent data quality, slow processes and the need for detailed scenario modeling. By focusing on these areas, companies can realize tangible benefits while building a foundation for broader AI adoption.

Summary: A Call to Action

These hot spots illustrate both the promise and the challenges of AI adoption in finance. Many companies recognize AI’s transformative potential but lack the strategic vision, resources and governance frameworks to fully leverage it.

Organizations can take the following steps to address these challenges:

1. Develop a holistic AI strategy: Align business objectives, technology requirements and organizational frameworks to integrate finance into a broader AI vision.
2. Invest in resources and expertise: Build internal skills and capabilities, prioritize cross-functional collaboration, and secure management support for AI initiatives.
3. Focus on high-impact use cases: Start small with well-defined projects that demonstrate clear value, such as automating forecasting or reducing manual tasks.

By addressing these gaps, companies can position themselves to unlock AI’s potential—turning finance into a driver of innovation and competitive advantage. The time to act is now!

Are you ready to unlock AI’s potential in your company and finance function? Download the full BARC research survey and learn more about the benefits and challenges of the strategic use of AI in finance.