Why AI Isn’t Transforming Finance Yet

https://sloanreview.mit.edu/article/why-ai-isnt-transforming-finance-yet/

Publish Date: 2026-06-02 09:45:00

Source Domain: sloanreview.mit.edu

AI Adoption Struggles in Finance: The article discusses the slow adoption of artificial intelligence in finance despite investments and initial expectations, highlighting the challenges faced by finance leaders.
Leadership Misalignment: A key reason for the slow adoption lies in the misalignment between the pace of technological advancements and the traditional methods of work within finance departments.
Research Approach: The study involved two research streams: action design research with organizations in digital transformation and interviews and surveys with CFOs and senior finance professionals.
Benefit of Forward-Thinking Practices: Finance leaders who adopt forward-thinking practices, including continuous adaptation and experimentation, are more likely to effectively integrate AI and derive benefits from it.
Optimistic Predictions vs. Reality: While there were optimistic predictions about AI transforming the corporate finance function, the reality has been more subdued with most AI tools either remaining unused or not significantly impacting decision-making.
Data and Technology Issues vs. Leadership Dynamics: While technology issues like data quality and tool integration play a role, the primary issue is the lag between the pace of new tools and leadership practices in the finance function.
Embedding New Practices: To harness AI better, finance departments should encourage practices like keeping alert to business changes, experimental work, and rethinking the future.
Comparative Outcomes Across Functions: Despite similar AI technologies being introduced in other corporate functions, they achieve more significant outcomes there compared to finance, suggesting deeper issues in how finance departments adopt and use AI.