EY: Tech Firms Overlook AI in Finance, Missing 40% Cost Savings

Tech companies are leaving significant value on the table by underutilizing Artificial Intelligence in their finance functions, according to a new report from EY. Shifting to “agentic AI” could slash operational costs by up to 40% and dramatically improve data accuracy.

Unlocking Agentic AI’s Potential

Many firms currently limit AI to basic automation, missing out on comprehensive transformation. EY advocates for an “agentic AI” approach, which reimagines finance processes with a “design for zero” mindset, minimizing human intervention.

This strategy moves beyond isolated tasks, creating intelligent, reusable workflows for repetitive functions. These include data consolidation, variance checks, and even generating first-draft commentary.

Key Benefits and Implementation

• Cost Reduction: Agentic AI can cut operational costs by up to 40%.
• Improved Accuracy: Minimizes human error, leading to higher data accuracy.
• Strategic Focus: Frees finance teams to concentrate on higher-value, strategic tasks.

For unique processes like order-to-cash (OTC) and financial planning and analysis (FP&A), tech companies should prioritize internal AI development. More standardized processes such as procure-to-pay (PTP) and record-to-report (RTR) can leverage off-the-shelf solutions as AI capabilities evolve.

Navigating Challenges

Addressing compliance and assurance concerns is crucial. EY recommends partnering with trusted advisors to navigate regulatory complexities and ensure the reliability of AI-driven financial reporting.

Despite challenges like tool selection, workforce readiness, and integration with existing systems, an AI-first, outcome-based strategy can accelerate finance function transformation from years to just months.