Innovation

Citizens survey reveals mid-sized companies are embracing AI for financial operations

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December 19, 2023

Mid-size companies and private equity firms are increasingly adopting AI to assess data, automate processes and streamline financial operations, according to a survey by Citizens. The survey, conducted in September 2023, included responses from 127 CFOs at mid-size businesses and 77 financial leaders at private equity firms, according to a press release.

The findings of the survey indicate a growing embrace of AI technology. For example, 76% of mid-size company CFOs reported already using AI for various purposes, while nearly 100% of private equity decision makers acknowledged AI use. Notably, 99% of the respondents recognized the transformative potential of AI in business operations.

Financial decision makers at private equity firms are ahead of the curve in AI adoption, with 81% of them stating that AI has made business easier. In comparison, only 45% of CFOs at mid-size companies shared the same sentiment. Additionally, 85% of private equity decision makers expect to increase their AI investments in the next five years, compared to 58% of mid-size company CFOs.

Among the mid-size companies already utilizing AI, more than half apply the technology for cash flow forecasting and financial analysis. However, specific use cases vary across industries, encompassing risk assessment, customer support, fraud detection and payment automation.

Many companies are also concerned about risks of AI, such as legal compliance, errors and privacy issues.