Nearly 85% of finance leaders in India are under moderate to significant pressure to demonstrate returns on investments in artificial intelligence, according to a recent report by tax compliance software company Avalara. The survey, conducted by Censuswide among 250 chief financial officers and senior finance leaders at Indian companies with annual revenues of at least $10 million, reveals the mounting pressure on financial executives to justify AI investments. This pressure is particularly acute as businesses increasingly integrate AI agents into critical financial operations, creating new accountability challenges for finance teams.
The survey found that 71% of respondents said the pressure around AI agents was primarily focused on deployment speed, with only 8% of organisations prioritising governance over speed. This emphasis on rapid implementation reflects the competitive advantage companies see in AI adoption, but it creates governance gaps that could undermine long-term confidence in AI systems. The report highlights that more than one in four finance leaders said accountability for significant AI-related errors remains unclear or rests with no one, indicating a need for clearer oversight mechanisms.
The report highlighted significant gaps in governance and oversight as AI agents become more deeply embedded in finance operations. Around 10% of Indian finance leaders said they were not confident they could clearly explain an AI agent's actions to regulators or auditors. Additionally, nearly one-fourth of respondents said their organisations had not updated internal controls in the past year to account for AI agents taking or recommending decisions. Only 28% of respondents reported that AI-related controls had been reviewed by IT or cybersecurity teams, while 34% reported reviews by risk or compliance teams.
The survey revealed a significant knowledge gap that compounds governance challenges, with 76% of finance teams lacking dedicated in-house expertise to understand how AI agents work. This expertise deficit creates additional pressure on finance leaders who must make critical decisions about AI adoption and implementation without sufficient technical understanding. The report warns that governance and documentation will need to keep pace with automated decision-making to ensure transparency and audit-readiness as AI becomes more integrated into financial processes.
