FEBRUARY 20, 2024
In the face of economic headwinds and fierce competition for in-demand skills, chief financial officers are increasingly compelled to embrace digital transformation to create a more agile and efficient organization. Driven largely by advanced Artificial Intelligence (AI) and Machine Learning opportunities, CFOs are focused on improving their technical proficiencies and increasing their digital competencies to drive fundamental change across both the finance function and the enterprise.
This shift will bring new obstacles to CFOs as they navigate significant process and staffing modifications. Furthermore, a recent Gartner report indicated that one of the biggest problems for CFOs in 2024 is the insufficient allocation of finance staff to technology work for their efforts to be successful. The report stated, “The most effective digital leaders dedicate nearly a third of their staff to technology work — roughly double the share that most finance teams dedicate to technology work.”
At Evanta, a Gartner Company, our CFO communities echo these concerns and are eager to come together to address how they can realize the value of digital transformation. New York CFO Governing Body Member, Kaj van den Kieboom, CFO of KIND Snacks, shared his views on how disruption will impact the CFO role over the next few years. He said, “There is a tremendous amount of change coming to finance with AI, automation, the war for talent and the need for the finance role to become much more of an operating entity. CFOs will have to become even more resilient and adaptable to change.”
CFOs’ mission critical priorities shape the agenda for our community programs and events throughout the year. In 2024, CFOs will be focused on the following three themes:
- Understanding the Evolving Standards for AI in Finance
Most finance teams are in the preliminary phases of integrating AI. Confronting unforeseen challenges, modern CFOs are actively seeking to leverage the capabilities of automation and AI to elevate process efficiency and foster organizational agility. In 2024, an increasing number of finance teams will embrace AI-driven tools, leveraging them to proactively navigate risks, strategically allocate capital, and analyze critical decisions.
- Enhancing Cost Efficiency Through Connected and Clean Data
In today's dynamic business environment, the recipe for business agility and increased profitability lies in data connectivity. In an era saturated with data, the swiftness with which businesses process information and embrace new technologies to leverage that data is essential for maintaining competitiveness. CFOs in 2024 are prioritizing data-connectivity and credibility to bolster the resilience of their finance teams.
- Transforming Finance Talent to Bridge Future Skill Gaps
The future workforce transcends traditional finance and accounting skills, emphasizing a recalibrated composition of digitally adept finance partners. Gartner research anticipates a dramatic talent shift by 2026, with half of new employees originating from non-finance and accounting backgrounds. CFOs must commit to investing in training and retraining initiatives, cultivating a blend of digital and soft skills within their current teams to address today’s evolving skill requirements.
This year, it will be crucial for CFOs to partner across the C-suite to establish a toolkit to transform the finance function – and the business – for the digital future. As San Francisco CFO Governing Body Member, Kelly Tuminelli, EVP & Chief Financial Officer at TriNet said, “I expect CFOs to play an even more important role at facilitating industry innovation while laying the groundwork for disciplined and accountable growth. Increased funding costs are going to drive choices, and CFOs are in unique positions to ensure organizations are sound and set up for success.”
To get the most up-to-date information on the topics your peers are discussing, we invite you to join a CFO community near you. If you are already an Evanta member, check out MyEvanta to view upcoming opportunities to collaborate in-person and virtually with your community.
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