AI's 'Verification Tax' is real as Sage and IDC warn that Finance leaders are having to adapt to meet a fresh challenge
Just what we need - another costly, hidden side effect to factor into enterprise AI adoption, this time the ‘Verification Tax.’ This phenomenon means that rather than saving time, professionals are finding themselves having to waste time and money on double-checking 'Black Box' AI outputs.
That’s the grim prognosis from The Emerging Economics of AI in Finance, a new white paper from Sage Group in association with research firm IDC, based on a survey of over 2000 senior finance decision-makers worldwide. It warns that Finance professionals spend nearly 13 hours every week re-constructing, validating, and defending AI outputs, with nearly half (48%) spending 15+ hours and almost one in five (19%) spend 30+.
The report finds:
Across industries, Finance teams are discovering that AI-generated outputs introduce new operational requirements tied to validation, explainability, governance, audit-ability, and accountability. Verification of those outputs now consumes a substantial share of Finance team...
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