EY’s Sam Peterson on AI’s Transformative Impact on Accounting and Finance#

Key Insights from Sam Peterson#

• AI’s Evolution in Finance:
  • Since the 2022 ChatGPT release, AI has progressed from basic automation to advanced generative and agentic models. By 2025, global AI investment is projected to reach $200 billion, with finance functions adopting AI for 38% of FP&A tasks, per an EY poll. link
  • Generative AI automates complex tasks like report generation and MD&A commentary, while agentic AI—autonomous systems acting like “employees”—handles workflows such as real-time forecasting and anomaly detection. link
• Real-World Applications:
  • FP&A: AI-driven forecasting tools, like Planful and Vena, leverage machine learning to analyze historical data, market trends, and economic indicators, reducing forecasting errors by up to 20% compared to traditional methods. link link
  • Treasury: AI optimizes cash flow management and risk assessment, with tools like Fuelfinance automating data syncing with platforms like QuickBooks to predict cash flow shortages. link
  • Financial Reporting: AI streamlines data entry, reconciliation, and compliance, with solutions like Botkeeper automating bookkeeping and reducing errors, freeing accountants for strategic roles. link
  • Example: JPMC’s AI-driven payment validation reduced fraud by 20%, showcasing cost savings and risk management benefits. link
• Emerging Trends:
  • Agentic AI: These systems, evolving from chatbots, autonomously manage tasks like transaction categorization and compliance checks, improving efficiency and customer interactions. link
  • Reasoning Models: Advanced models analyze complex datasets, identify causal relationships, and provide predictive insights, transforming finance departments into strategic hubs. link
  • Explainable AI (XAI): Emphasizes transparency and fairness to address bias and regulatory concerns, critical for maintaining trust in AI-driven decisions. link

Opportunities and Challenges#

• Opportunities:
  • Efficiency and Cost Savings: AI can automate 42% of finance activities, with robotic process automation (RPA) handling tasks like journal entries, yielding up to 35% cost savings over two years. link
  • Enhanced Decision-Making: Predictive analytics and scenario modeling provide real-time insights, improving cash flow forecasting and strategic planning. link
  • Financial Inclusion: AI-driven credit scoring, as seen with BNPL data integration by FICO (July 9, 2025), could broaden access to credit if paired with education.
• Challenges:
  • Data Privacy and Security: AI’s reliance on sensitive data raises cyber risks, requiring robust measures like GDPR compliance and anonymization. link
  • Regulatory Gaps: The lack of standardized AI frameworks in finance, coupled with varying state-level privacy rules, complicates compliance. link link
  • Workforce Adaptation: With AI automating entry-level tasks, firms face a talent shortage (90% of accounting firms struggled to hire in 2023, per Accounting Today). Upskilling in AI and data analytics is critical. link
  • Bias and Ethics: Unmanaged AI bias risks unfair outcomes, necessitating explainable AI and public-private partnerships for governance. link

Preparing for the AI-Driven Future#

• Strategic Integration: Peterson advises finance leaders to prioritize scalable, cloud-based AI infrastructure and clean data structures to maximize ROI, as 80% of firms plan to reshape data systems for AI, per Bain. link
• Workforce Upskilling: Programs like Amazon’s Upskilling 2025 Initiative offer a model for training accountants in AI and data science, shifting roles from task-based to strategic. link
• Governance Frameworks: Transparent AI use, continuous feedback, and third-party audits are essential to balance innovation with risk mitigation. link
• Human-AI Collaboration: Accountants must combine AI tools with human judgment to deliver high-value insights, as AI enhances rather than replaces expertise. link

Industry Context#

• Global Trends: The Asian Banking & Finance Fintech Awards 2025 (July 8, 2025) recognized AI-driven solutions like Tookitaki’s analytics, reflecting global adoption of AI in finance. Similarly, Credas’ Compliance Wallet (July 9, 2025) shows how AI streamlines regulatory processes.
• Economic Backdrop: Rising US consumer debt and tariff-driven inflation (Yahoo Finance, July 9, 2025) underscore the need for accurate forecasting and risk management, where AI excels.
• Sentiment on X: Discussions on X highlight excitement for AI’s efficiency gains but caution against over-regulation stifling innovation, echoing Peterson’s call for balanced governance.

Conclusion#

Sam Peterson’s insights on the FEI Daily podcast underscore AI’s transformative potential in finance and accounting, from automating FP&A to enabling strategic foresight through agentic AI. However, realizing these benefits requires addressing data security, regulatory gaps, and workforce readiness. Finance leaders should adopt AI strategically, invest in upskilling, and prioritize transparent governance to stay competitive. For more details, listen to the podcast at www.financialexecutives.org or explore EY’s AI solutions at www.ey.com.