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Research - 22.01.2025 - 08:30 

Artificial intelligence in finance departments: companies from the DACH region are leading in Europe

An international study led by the University of St. Gallen (HSG) shows that the importance of AI in finance is growing. However, strategic applications and clear governance are lacking in many organisations. Medium-sized companies are at risk of falling behind. Companies from the DACH region are leading in Europe.

How is the use of artificial intelligence developing in finance departments? To find out, 542 finance experts, including over 200 chief financial officers (CFOs), were surveyed for the Future Directions in Finance study. The aim of the study was to identify key challenges and opportunities for the use of AI in finance departments. 

Key findings of the study for the DACH region: 

  1. German-speaking countries lead the way in AI skills 
    In an international comparison, the DACH countries are doing better than other European countries in developing AI skills and significantly better than other European countries in applying AI. 
     
  2. AI use in finance is growing slowly but surely 
    Although 60% of finance employees are encouraged to use AI, only 18% are trained to use it for daily tasks. On the other hand, there is a growing level of expertise and demand for all technologies that are already in use. 
     
  3. AI application skills of employees are more advanced than the embedding of AI in organisations
    90% of finance employees have application skills in generative AI (ChatGPT etc.), almost 100% in the area of data visualisation (PowerBI etc.). This makes it clear that the profile and demands of financiers are changing dramatically. However, only 25% of organisations have their own AI departments.
     
  4. AI support for forecasting 
    Revenue forecasting is a preferred field of application for AI. Already, 10% of DACH companies use a mix of AI and human control, while 6% rely on purely autonomous solutions. 7% of companies use AI for inputs. This means that almost a quarter of the companies surveyed in the DACH region use AI for forecasting, compared to only 17% in the European dataset. 
     
  5. Trust: the interaction between AI and humans is the measure of all things
    When it comes to trust, the study reveals significant differences: for example, over 90% of participants trust the advice generated by the interaction between AI and humans. For advice generated purely autonomously by AI, trust is significantly lower (49%). 
     
  6. AI as a competitive advantage: SMEs at risk of falling behind 
    Larger companies and those experiencing strong growth are making greater use of AI. In this respect, AI poses a potential threat to medium-sized and small businesses. 
     
  7. Governance gap: finance departments neglect clear guidelines 
    More than 50% of finance departments in the European dataset work without comprehensive AI governance. This increases the risk of data protection violations and compliance issues. Only 7% see the main risks as fully covered. 

Methodology 

The study is based on a comprehensive international survey conducted between July and October 2024. A total of 542 finance professionals from seven countries (Germany, Austria, Switzerland, Italy, Sweden, Spain and the Netherlands) took part. The survey included questions on current and potential uses of AI in finance, as well as on governance, skills and strategic direction. The participants come from companies in a range of industries and of different sizes, ensuring a broad spectrum of perspectives. In addition to quantitative data, such as on the use of AI tools and existing governance frameworks, qualitative assessments were collected on the role of finance departments. 

The study was conducted in collaboration with the following universities: University of St. Gallen (HSG), ESADE Ramon Llull University, SDA Bocconi, Stockholm School of Economics, Vienna University of Economics and Business, and Utrecht University. 

Conclusion 

Prof. Dr Klaus Möller from the University of St.Gallen, who led the study, sees great potential in the use of AI, but also emphasises the urgency of accompanying the topic with appropriate governance regulations. ‘Our study shows that, despite great potential, the financial sector is still a long way from making strategic use of AI. Its success will depend on how quickly competencies and governance frameworks are developed.’ 

‘Accounting AI Lab’ in Switzerland

Research into the relationship between artificial intelligence and finance is also being intensified in Switzerland. To this end, Prof. Dr Klaus Möller, together with Prof. Dr Antonio Davila from the University of Lausanne and other colleagues, is founding an Accounting AI Lab. In this project, which is supported by the Swiss National Science Foundation (SNSF), the researchers will explore how AI can revolutionise finance – from acceptance and trust in AI to strategies for effective human-AI interaction. This project ties directly into the findings of the report ‘Future Directions in Finance’, which highlights the growing importance of AI and technology skills in finance. Further information on this project will follow in due course.


Image: Adobe Stock / ipopba

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