Finance teams must rapidly adapt to AI and sustainability trends, report warns
Finance teams must adapt to rapidly changing business demands or face the risk of becoming “obsolete”, new research from CA ANZ, ACCA and PwC suggests.
Finance teams have just five years to adapt their processes and operations to become sustainable businesses or risk becoming irrelevant, a new report reveals.
A new report, Finance Evolution: Thriving in the Next Decade, highlighted the vital role finance teams play and has urged CFOs and finance leaders to take immediate action.
The report was based on the insights from over 150 finance professionals and 2,300 survey responses, and was commissioned by CA ANZ, ACCA and PwC.
According to the professional bodies, the report outlined why finance teams must act now to develop their skills and knowledge.
“Businesses now demand a broader skill set from their finance teams, as retrospective reporting and traditional approaches to planning and forecasting alone no longer meet key decision-makers’ needs,” the report said.
“Being pre-emptive is the order of the day.”
ACCA chief executive Helen Brand OBE said for finance teams to stay relevant, they need to look ahead.
“CFOs and finance leaders must ensure they are measuring both the long-term and short-term goals of sustainable business models effectively,” she said.
“The role of the CFO is fast evolving beyond finance to encompass wider value creation and management.”
Respondent concerns were also highlighted in the report.
This included 38 per cent being concerned with a lack of clarity on how finance can add value to the business, 32 per cent said finance is seen mainly as a cost centre, and 30 per cent said they were concerned with current technology not meeting the needs of the organisation.
The professional bodies said finance teams must embrace new technologies such as AI, machine learning and data analytics to enhance decision-making and operational efficiency.
“These technologies help finance teams reduce manual tasks, boost efficiency and be recognised as key drivers of growth rather than merely number crunchers,” the joint bodies said.
“The role of finance has also expanded to include leadership on long-term value creation including sustainability issues.”
Despite the push for finance teams to evolve, the importance of ethics remaining at the forefront has been underscored.
Maintaining a strong ethical foundation is crucial to building and sustaining trust.
CA ANZ CEO Ainslie van Onselen said the profession must uphold its strong ethical standing.
“While the arrival of new technology presents exciting opportunities to radically transform and improve the way we work, the one thing that must never change is our profession’s strong ethical standing,” she said.
“While we upskill and future-proof our technology capabilities, we must also remain firmly focused on the ethical role that finance professionals, especially chartered accountants must play.”
The report is a clear call for action that finance teams must embrace new technologies, develop critical skills in digital, data and sustainability, and uphold the highest ethical standards to ensure they remain integral to their organisations’ future success.
The professional bodies have emphasised the importance in addressing the skill deficit gaps in digital, data and sustainability so finance teams can lead effectively in the future.
PwC partner Simon Seymour said the respondents reported the biggest skills gap in digital, data and technology.
“A critical question for the industry as a whole is why these skills gaps remain so pronounced and how far organisations should go to own the skills agenda and not just reply on traditional training,” he said.
