Navigating Spend Management in the Year of AI Adoption

In 2023, generative artificial intelligence (AI) was a bit of an enterprise parlor trick. While AI tools fascinated and amused, less than 5% of organizations reported broader efforts to deploy generative AI applications or use enabled APIs and models.   

But all that’s changing.  

In fact, Gartner predicts that more than 80% of enterprises will have embedded generative AI into their operational DNA by 2026, making 2024 a pivotal year for AI adoption. This year, AI will start to lose its novelty and instead become a game-changer in the business world. No longer just a tool for creating images or editing blog posts, AI will now provide substantial value to organizations while reshaping the future of work. 

And nowhere is this transformation more prominent than within the world of finance. We have been using AI in SAP Concur solutions for nearly a decade, and in the coming months, generative AI will become an essential part of finance departments’ workflows. AI will play a crucial role in changing not just how finance teams work but the very nature of the work itself.  

Finance Operations Will Transform 

Historically, finance teams have grappled with outdated tools and data, leading to inefficiencies and inaccuracies in travel and expense management. Generative AI, however, presents a transformative opportunity: its capabilities in data reconciliation, fraud detection, and risk management are not only increasing efficiency but also enabling finance professionals to focus on higher-level strategy and decision-making. 

Already, banks are streamlining trade finance and compliance reporting, and industry leaders like Chobani and PETRONAS are leveraging AI-driven tools to revolutionize expense auditing. These advancements pave the way for finance departments to set transformational goals, ensuring that generative AI becomes an integral part of their operational DNA. 

Real-Time Insights Will Redefine Financial Analysis  

The transformative power of generative AI is set to redefine financial reporting and analysis through its real-time data analysis capabilities. AI algorithms are now equipped to detect trends, predict market changes, and offer actionable insights that were once unattainable due to the overwhelming volume of data. This advancement ensures that financial forecasts are not only more accurate but also delivered promptly, aiding organizations in making informed decisions swiftly. 

In response to the increasing complexity of financial forecasting, CFOs across all industries are prioritizing investments in data analytics and reporting. This strategic focus will harness generative AI’s predictive analytics to foresee potential risks and opportunities, thereby enabling finance teams to proactively adjust their strategies. Such investments will be crucial in enabling organizations to navigate market fluctuations with agility, maintaining and enhancing their competitive edge in an ever-evolving business landscape. 

Trust and Ethical Considerations Will Be Paramount  

With great power comes great responsibility. As generative AI becomes embedded in finance operations, ethical considerations and compliance with regulations will be paramount. Organizations will need to establish clear guidelines to ensure that AI is used responsibly, particularly when it comes to customer data and privacy. 

In the forefront of ethical AI deployment, SAP Concur’s suite of tax solutions exemplifies our dedication to responsible AI use. Leveraging AI, we offer Concur Tax Assurance, which simplifies compliance by automating the detection and validation of tax-deductible expenses, ensuring businesses stay aligned with GST and VAT regulations. Additionally, our Verify feature employs AI to bolster audit processes, meticulously checking for policy adherence and flagging irregularities. These AI components are integral to SAP Concur’s ecosystem, not only aiding in compliance but also fortifying the trust our customers place in us, as we navigate the evolving landscape of financial ethics together. 

Workforce Preparedness is Underway  

Our recent CFO Insights research underscores a pivotal trend: 90% of senior finance leaders now prioritize equipping their organizations for unforeseen challenges, reflecting the transformative impact of generative AI on the finance function. At SAP Concur, we’re at the forefront of this evolution, providing CFOs and enterprise leaders with the necessary training and resources to adapt to an AI-centric business landscape. This strategic investment is validated by the 61% of CFOs who view AI as essential for managing the unexpected. 

Moreover, 51% of CFOs are channeling investments into AI for a spectrum of financial processes, from bookkeeping to risk scenario planning and fraud monitoring. Yet, embracing AI also unveils a knowledge gap; 58% admit to a limited understanding of AI technologies, and 46% express an urgent need for training or in-depth education. Our commitment to professional development is designed to address this gap, ensuring that finance professionals are not only prepared but also proficient in leveraging AI to drive innovation, operational efficiency, and turn uncertainty into a strategic advantage. 

Looking Ahead 

2024 marks a significant milestone in the adoption of generative AI in finance that is poised to unlock unprecedented levels of efficiency, accuracy, and personalization in spend management. By integrating generative AI into their operational DNA, finance departments will optimize processes, mitigate risks, and fulfill a more strategic role. As the finance landscape continues to evolve, organizations that embrace AI-driven strategies will thrive in an increasingly competitive market, setting new standards for excellence and innovation.