Generative AI (GenAI) is no longer just a buzzword or a back-office experiment—it's rapidly becoming a strategic powerhouse in the world of finance. Recent findings from the PYMNTS Intelligence report reveal a remarkable shift: finance leaders are moving GenAI from the sidelines to the very heart of their operations, using it to tackle complex challenges and drive smarter decisions.
From Experimentation to Essential Strategy
Imagine a CFO, once cautious about new tech, now championing GenAI as a must-have tool. This is the reality for many U.S. firms with over $1 billion in annual revenue. The report surveyed 60 chief financial officers (CFOs) and found that 45% of middle-market firms are now using GenAI for medium-impact tasks—up from just 35% a few months prior. These aren't just routine automations; we're talking about data visualization, financial reporting, and capital management—areas that directly influence a company's future.
Why the Sudden Surge?
The economic landscape is uncertain, and finance leaders are under pressure to make faster, more informed decisions. GenAI offers a solution by turning mountains of data into clear, actionable insights. In fact, over 60% of CFOs say they're using GenAI for data visualizations and reports, making it the most common application. The confidence in GenAI's value is skyrocketing: the percentage of CFOs who see it as crucial for financial reporting jumped from 37% to 68% in just three months. For capital management, that number nearly doubled as well.
The Changing Face of GenAI Providers
While OpenAI's ChatGPT has been a household name, the competitive landscape is shifting. Fewer CFOs now see OpenAI as the undisputed leader, with Microsoft, Google, and Meta gaining ground. This diversification means finance teams have more options—and potentially more innovative solutions—to choose from as they invest in GenAI.
Actionable Tips for Finance Teams
- Start with High-Impact Areas: Focus on financial reporting and data analysis, where GenAI can deliver immediate value.
- Pilot and Scale: Begin with small projects to test GenAI's capabilities, then expand as you see results.
- Stay Informed: The GenAI provider landscape is evolving. Regularly review new offerings and best practices to stay ahead.
- Foster a Data-Driven Culture: Encourage teams to embrace data and AI-driven insights in everyday decision-making.
What’s Next for GenAI in Finance?
The momentum is undeniable. Over 98% of surveyed CFOs expect GenAI to positively impact their industry within the next three years, especially in accelerating decision-making. As new use cases and providers emerge, finance departments that adapt quickly will be best positioned to thrive.
Key Takeaways
- GenAI is moving from experimentation to core finance strategy.
- 45% of middle-market firms now use GenAI for medium-impact tasks.
- Confidence in GenAI for financial reporting and capital management is surging.
- The provider landscape is diversifying, offering more choices for finance teams.
- Early adoption and continuous learning are crucial for maximizing GenAI’s benefits.