Matt Rodgers, Managing Director, EMEA at OneStream
Preparing for the year ahead can be daunting for finance departments, demanding meticulous attention to detail and careful planning. This is only intensified by the prevailing talent shortage and aging workforce within the finance industry, contributing to gaps in essential digital skills.
Recent research shows that 90% of employers are grappling with skills shortages in the finance function, leading to wavering productivity, burnout, and a struggle to stay ahead in an ever-evolving economic climate. To bridge these gaps and arm the finance role with strategic agility, two key considerations are needed.
Firstly, upskilling the workforce to meet the growing need for digital skills and secondly, implementing purpose-built solutions driven by Artificial Intelligence (AI) and Machine Learning (ML). AI and ML are integral to confident decision making for finance teams, automating tasks, helping analyse data, and presenting real-time insights for finance departments to use.
Navigating the challenges in the industry
Fewer people are entering the finance profession than ever before, yet demands on finance departments are growing every year. This is especially true for yearly forecasting, a task that demands substantial time and resources. This becomes even more challenging when teams find themselves understaffed.
Almost half of CFOs have indicated a shortage of talent required for forward-looking finance operations exists, leaving employees overwhelmed. This can lead to burnout, a persistent issue in the sector showing no signs of relief, even since the implementation of hybrid work models.
The use of AI is a key way to tackle burnout, automating processes to give finance leaders space to focus on more strategic tasks. Yet OneStream research shows 61% of finance executives are not using AI and just 29% of finance leaders believe the industry will start to use AI more often over the next five years.
This poses a problem. Finance is struggling to keep up with increasing demands without the means to ease increasing pressure. To support teams in planning the year ahead and to prevent burnout, leaders should look to embrace the potential of AI-driven technology.
Transforming data entry
Finance teams must grapple to manage ever-increasing data sets as businesses become more data reliant across all industries. But relying too much on manual methods can lead to a loss of control from human error and a lack of repeatability.
The good news is, the incorporation of purpose-built AI and ML enables finance teams to overcome the constraints of manual data entry inherent in spreadsheets. It can analyse large sets of data, predict future outcomes and help companies focus on new growth opportunities.
AI can prepare a company for inevitabilities when internal and external change occur. This can be achieved through granular data analysis for scenario analysis and risk management. This process would be time intensive and unreliable if undertaken manually.
However, AI doesn’t just automate manual work; it can also put the power of data science into the hands of finance leaders.
Unlike generative AI or AI automation, true, purpose-built AI can help guide the business by addressing specific business challenges.
The granular level of insight that AI and ML solutions bring into the business is crucial to drive strategic decisions, allowing the business to remain agile and better allocate resources in response to changing market conditions.
As professionals move away from conventional forecasting methods towards predictive models, they can enhance the overall efficiency of their financial operations. They will also have peace of mind that their financial forecasts are agile and insight-driven for confident decision making.
Encouraging a new wave of talent
This AI revolution isn’t just about the tools, but rather how it’s changing the finance role for a new generation of talent who have grown in a digital-first era.
Our report reveals that 72% of finance leaders agree that AI will create opportunities for new jobs in the industry. With AI automating routine tasks and redefining traditional roles, professionals can move beyond the balance sheet to focus on high-value strategic initiatives.
Implementing AI-driven solutions alongside investment in upskilling current employees will equip finance professionals with the confidence and capability to navigate the evolving landscape of finance. By embracing AI technologies and fostering a culture of continuous learning and adaptation, finance teams can not only bridge the existing talent gaps but also unlock new avenues of growth and innovation.
Looking ahead to the challenges and opportunities of the coming year, finance leaders must harness the transformative potential of AI to drive strategic decision-making and empower their teams for success. In doing so, they will not only be confident in forward planning today, but also lay a foundation for a resilient and agile finance function for the future.
