The PYMNTS Intelligence report “Smart Spending: How AI Is Transforming Financial Decision Making,” a collaboration with Coupa, quantifies how enterprises are using AI, as well as the perceived opportunities and challenges surrounding its adoption, particularly within the AP function. AI is already altering how companies manage their finances, improving areas like payment processing, expenditure visibility and operational efficiency.
The report’s insights are based on a survey of 60 chief financial officers at firms in the United States that generated at least $1 billion in revenue last year. Conducted from Feb. 6 to Feb. 14, the survey includes perspectives from firms across a range of industries, including retail, education, finance and technology. The analysis considers all types of AI, including generative AI. Despite the potential for AI to reduce costs, predict data-based outcomes, manage risk and drive profitability, integrating the technology effectively presents hurdles.
Key data points from the report include:
- Most enterprise CFOs are engaged with AI for AP, as 82% of enterprise CFOs surveyed are either using AI in their AP functions or are considering its adoption. This group is divided into “adopters” (38% actively using) and “explorers” (43% interested but not yet using). Only 18% are classified as “skeptics,” showing no interest in the technology.
- Challenges persist in integrating AI into existing financial systems. Nearly two-thirds of CFOs report problems integrating AI into their technology stacks. This difficulty is particularly pronounced among goods enterprises, with 78% citing integration issues. Furthermore, a lack of customization is a common struggle, reported by 44% of all companies and universally cited by technology firms. High implementation costs also pose a challenge, as reported by 89% of service businesses.
- CFOs express a willingness to invest in AI solutions that provide enhanced visibility and control, as 68% of CFOs are willing to pay for AI solutions that offer real-time visibility into expenditures. This highlights the perceived value of spend-tracking capabilities for financial control. Many would also invest in capabilities like AI-fueled support for vendor negotiations (67%), budget optimization (60%), fraud detection (55%) and predictive analytics (52%).
Beyond these points, the report also highlights how complex business operations and regulatory compliance across different regions create barriers to streamlining spending with AI.
While benefits like boosting transparency, enhancing financial accuracy and improving payment efficiency are seen as the biggest advantages driving growth, the survey also touches upon specific use cases where AI is being deployed, such as payment scheduling, predictive cashflow analytics, procurement automation and vendor relationship management.
The demand for AI tools that offer greater cross-system compatibility, cost-effectiveness and customization underscores the ongoing shift toward AI-driven financial management.
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