2023-12-07 11:14:22
Challenge and opportunity: Executives want to use AI and other emerging technologies to improve finance
Frankfurt (ots) – C-suite and finance and accounting (F&A) executives worldwide believe that modern companies need to adopt new technologies like AI to streamline their financial operations. However, many confirm that they lack the necessary talent to implement it. These are the results of one Studydie BlackLine Inc. (Nasdaq: BL) as a leader in digital financial transformation.
The vast majority of respondents said cloud computing (80 percent), generative AI (78 percent) and new types of AI (76 percent) are critical to improving business resilience in the face of future disruption. The current skills shortage in F&A and the lack of knowledge of these new technologies might exacerbate the situation and further widen the skills gap. A third of respondents (34 percent) cited the ability to leverage new technologies or software as a key skill for their organization to remain agile in the face of disruptive events. However, more than a quarter (28 percent) said adopting AI and other new technologies is problematic if their Q&A team doesn’t have or are unable to develop the right skills today.
The study, recently conducted by independent research firm Censuswide, surveyed 1,339 C-suite and F&A professionals globally in the US, Canada, UK, France, Germany, Australia and Singapore regarding their views on emerging technologies and their potential impact on F&A and Companies in general.
“Financial automation technology is now a necessity for F&A departments and companies are excited and optimistic regarding how technologies like AI can further streamline processes and complement existing systems. While there are understandable concerns regarding adopting new technologies, there is also valuable opportunity for F&A leaders to enable the development of their teams through automation,” said Therese Tucker, Co-CEO of BlackLine. “Leaders must continue to proactively leverage available technologies to reduce time spent on manual tasks, reduce errors in financial data and provide transparency. This will help them make faster, smarter and more informed decisions.”
When asked how AI might positively impact their industry, C-suite executives and Q&A experts cited five aspects:
1. Improved audit capabilities that improve pattern identification and detection of potential fraud or errors
2. The ability to process large amounts of financial data at high speeds, resulting in more insightful analysis
3. Automating repetitive tasks, improving accuracy and reducing errors
4. The ability to analyze large volumes of financial data to identify compliance gaps
5. Improved analysis of historical financial data to optimize forecasts
While the overall response to AI technology was positive, there were significant differences between regions. Respondents in the USA were the most confident. 91 percent believe AI might effectively prepare Q&A departments for disruption. In contrast, trust is lower among European respondents, with percentages ranging from 72 percent in the UK to 57 percent in Germany.
Hurdles remain
Respondents also identify obstacles that Q&A must overcome to effectively use AI technology. The most commonly cited hurdle is training AI models to properly understand and interpret complex financial data. Confidence in the results of AI and ensuring a robust governance framework to prevent the potential misuse of AI were also key concerns.
Bridging the skills gap
While companies are exploring how to leverage these technologies, most acknowledge that they lack expertise in these areas. 62 percent said they do not have enough team members with deep technical knowledge to identify and resolve complex accounting issues. Additionally, bringing these skills to Q&A departments is proving particularly difficult. Nearly two-thirds (64 percent) have difficulty recruiting and retaining enough qualified F&A employees to fulfill internal controls responsibilities. Only regarding a third of respondents confirm that their F&A department has sufficient strategic thinking skills (35 percent) and data analysis skills (34 percent). Even fewer (29 percent) believe they currently have the skills needed to use new technology or software.
Mike Polaha, SVP of financial solutions and technology at BlackLine, said: “Technology can provide some relief and create an environment where accountants don’t have to spend all day working on spreadsheets, posting journal entries and reconciling accounts. The more a business “The more mundane tasks we can automate, the more mundane tasks are taken off F&A staff. This goes a long way to improving perceptions of the industry and in turn can lead to exciting and challenging roles for new and existing talent.” Polaha continued: “As business becomes more complex, companies with well-trained Q&A teams will have a competitive advantage. Those who master new data, analytics and AI modeling technologies will gain business insights that inform broader business functions such as Better support sales, HR and IT. This will help seize opportunities and avoid potential disruption. These teams will not only be better equipped for the future, but also drive innovation and efficiency in day-to-day operations. Now is the time for Q&A -Leaders build the skills of their existing workforce to future-proof their operations and strengthen their company’s resilience.”
Here You can download an infographic regarding the study.
Background and methodology of the study
The study was conducted online by Censuswide. 660 C-level and 679 F&A professionals were surveyed in seven markets (USA, Canada, Great Britain, France, Germany, Australia and Singapore) at companies with the following minimum annual sales:
- USA: 150 Mio. USD
- Kanada: 50 Mio. CAD
- UK: 50 Mio. GBP
- France: 50 million EURO
- Germany: 50 million EURO
- Australia: A$20 million
- Singapore: SGD 20 million
Questions & Contact:
Janet Timmerberg
Mail: janet.timmerberg@blackline.com
Phone: +49 175 851 40 16
The Squaire 12
60549 Frankfurt Main
Internet:
Schmidt Communications GmbH
Alexandra Schmidt
Mail: alexandra.schmidt@schmidtkom.de
Phone: +49/89/ 60669222
Mobil: +49/170/3871064
Thilo Christ
Email: thilo.christ@schmidtkom.de
Phone: +49/89/ 60669222
Mobil: +49/171/6220610
Schillerstrasse 8
85521 Ottobrunn b. Munich
1701948121
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