Generative AI Slashes Finance Costs by 45% and Delivers Insights 74% Faster, Study Finds

Financial Organizations Using Generative AI Cut Costs by 45%

A new study by The Hackett Group reveals that financial organizations leveraging generative AI operate with significantly lower costs and improved efficiency. These companies report 45% lower costs as a percentage of revenue, deliver executive insights 74% faster, and generate forecasts 57% more efficiently than their counterparts.

Beyond cost savings, these organizations dedicate 68% more time to forward-looking analysis and strategic insights. They are also 54% more likely to align their business planning with the annual budget, leading to better financial discipline and agility.

Key Findings from The Hackett Group Research

The Hackett Group identifies "digital world-class financial organizations" as those in the top quartile for both business value and operational excellence. These firms spend less time on data collection and more on generating actionable insights, powered by generative AI and advanced data analytics.

• Business Effectiveness
  - 68% more time on forward-looking analysis and strategic insights.
  - 54% higher likelihood of aligning business planning with the annual budget.
  - 48% fewer days in accounts receivable and 83% fewer delinquency days.
• Digital Enablement
  - Twice as likely to let cost center managers input budgets online and run ad hoc reports.
  - Nearly 100% provide online access to customer accounts, six times more than peers.
  - Suppliers use self-service portals seven times more often.
• Customer and Stakeholder Experience
  - 42% more stakeholders view finance as a valuable partner.
  - 25% more likely to use electronic invoicing, reducing errors by 48%, and enabling nearly 100% of receivables to be collected on time.
• Operational Efficiency
  - Closing cycles are 35%–57% shorter.
  - 57% less spending on planning and forecasting, with increased investment in business analytics.
  - Up to 42% fewer full-time employees needed in key finance roles.
• Process Automation
  - 56% more likely to automate order-to-cash processes.
  - Around 80% of accounts payable workflows fully automated.
  - Nearly 99% of journal entries automated, compared to 85% among peers.

Building the Finance Operating Model for Generative AI

To reach this level of performance, finance functions must redesign their operating models around generative AI. The Hackett Group highlights six essential levers:

• Service Design: Redesign core processes for autonomous workflows and customer-focused experiences.
• Technology: Modernize legacy systems, adopt cloud platforms, and apply generative AI to speed up reporting, forecasting, and analytics.
• Human Capital: Equip teams to work alongside AI, foster innovation, and build leadership and business partnership capabilities.
• Analytics and Information Management: Implement enterprise-wide data governance and ensure finance data is AI-ready.
• Service Partnership: Outsource transactional tasks and focus internal talent on strategic priorities; partner with ethical AI providers.
• Organization and Governance: Flatten hierarchies, establish AI centers of excellence, and adopt cross-functional, end-to-end service models.

According to Vince Griffin, Practice Leader for Executive Finance Advisory at The Hackett Group, “Digital world-class financial organizations are becoming trusted strategic partners by automating routine work and elevating analysis with generative AI.” This transformation is driving measurable improvements in planning, forecasting, and decision-making.

Finance professionals aiming to stay competitive should consider how generative AI can streamline processes and sharpen insights. For those interested in practical AI training tailored to finance roles, resources are available at Complete AI Training.