AI News Monitor

A new survey by KPMG International reveals that Canadian organizations are outpacing their global counterparts in integrating artificial intelligence (AI) into finance functions, driving better decision-making and higher returns on investment (ROI). The study, which surveyed 2,900 organizations across 23 countries, including 100 in Canada, found that 82% of Canadian respondents are using or piloting AI in finance, compared to 71% globally.

Canadian firms are leveraging AI to enhance data accuracy, predict trends, and improve financial reporting. Nearly 70% of Canadian organizations report that their AI investments are meeting or exceeding expectations, surpassing the global average by eight percentage points. Key areas of AI application include accounting, financial planning, tax, and treasury management.

Canada is particularly ahead in AI adoption for tax operations, with 63% of organizations piloting or using AI in this area, compared to just 34% globally. However, many Canadian firms remain in the pilot stage, facing challenges such as complex regulations, outdated data, and legacy systems.

KPMG’s maturity framework classifies 25% of Canadian organizations as AI “leaders,” characterized by higher investments, stronger governance, and more use cases. These leaders report significantly higher ROI, with 92% meeting or exceeding expectations, compared to 61% of non-leaders.

Despite progress, barriers like data security vulnerabilities, limited AI talent, and inconsistent data persist. Chris Moore, Partner and National Leader of Finance Transformation at KPMG Canada, emphasized the importance of aligning AI with business strategy and upskilling talent to overcome these hurdles.

The survey also highlights a growing demand for AI assurance, with over half of Canadian organizations expecting external auditors to review their AI controls and governance. However, regulatory standards for AI use remain limited.

KPMG’s findings underscore Canada’s leadership in AI-driven finance innovation, with significant potential for further growth as organizations deepen AI integration across their operations