Wed Feb 26 13:10:00 UTC 2025: ## AI Hype Meets Reality: Most Finance AI Projects Fail to Launch, Study Shows

**London, UK** – A new study reveals a significant gap between the hype surrounding artificial intelligence (AI) in finance and its actual implementation. While CFOs widely believe AI can revolutionize decision-making, risk management, and compliance, a mere 13% of AI implementation projects in 2024 were successful, according to market intelligence firm IDC.

The research, sponsored by software company Unit4, highlights the challenges of identifying suitable AI applications, or “use cases.” Michael Lengenfelder of Unit4 warns of a “real danger” of applying AI to already efficient processes. He emphasizes a pragmatic approach, focusing on solving specific problems and carefully weighing the costs against potential benefits before implementation.

The study also points out the limitations of AI. Tasks requiring human judgment, experience, and the ability to handle unforeseen events, such as financial planning and analysis involving unpredictable market fluctuations, are not well-suited to current AI technology, particularly generative AI relying on large language models (LLMs).

The emergence of DeepSeek, a cost-effective Chinese AI, has further shaken the industry, leaving companies scrambling to understand the implications and optimal AI strategies. IDC’s Tom Seal suggests focusing on “super-use cases” that offer significant efficiencies and improved insights, while emphasizing the crucial role of human oversight to avoid a “lack of nuance.”

The report reveals a significant regional variation in AI adoption and perception. While Germany plans less AI investment (53%) than the US and UK (59%), Benelux employees show far greater concern (82%) than their US counterparts (93%) about potential harm to employees and customers from AI applications.

Despite the setbacks, experts believe AI holds transformative potential for finance departments. However, the successful integration of AI requires careful planning, employee training, and collaboration between CFOs and other executives. The research concludes that the widespread adoption of AI in finance remains in its early stages, with many companies still navigating the complexities of implementation.

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