CFOs dream of value creation—E

EY warns that CFOs are lagging behind on the AI ​​curve, putting the growth and value creation they seek at risk.

CFOs are sitting on a goldmine of tech possibilities – but most aren’t ready to dig into it. This is the key finding from Ernst & Young’s new survey titled The DNA of CFOs.

Finance leaders want to make investment decisions and create value. Yet, most of these bosses are constrained by skills gaps, limited AI readiness, and outdated measurement frameworks.

The London-based accounting firm received responses from more than 1,600 CFOs and senior finance leaders from 28 countries and 22 industries. The consensus reflects a growing gap between CFOs’ ambitions and what actually gets the job done.

“While CFO ambitions are clear, there is a significant gap when it comes to implementation,” said Miles Corson, market leader of EY Global Strategy and Financial Accounting Advisory Services. global finance.

Consider the numbers: 60% of CFOs want to lead on value creation, but only a quarter currently guide value-creation discussions or make major investment decisions.

Another finding from the EY CFO survey reinforces this disconnect: Only 27% of respondents say their organizations view finance as a key partner in value creation.

Corson said, “Organizations that treat finance as a key partner have one common characteristic: their finance functions demonstrate insight beyond the ‘comfort zone’ of financial performance.” “They are also more actively involved in decisions – and this is what builds their reputation as valuable business partners.”

AI: what should change

Most respondents (68%) also say the definition of enterprise value needs to change. This reflects frustration with traditional metrics that fail to capture new sources of growth. Nearly half (49%) say traditional measurement tools cannot adequately reflect the value created by technology, data and long-term investments, while half (50%) cite difficulty in demonstrating upfront returns on investment.

The report also points to significant barriers to AI adoption in finance functions. Only 21% of CFOs say their organization’s AI preparedness is “leading” or “advanced,” while less than 15% describe their teams as highly adaptable or confident in using new technologies. Less than half of CFOs see strong AI capabilities in areas such as data analysis (49%), growth forecasting (45%), and dynamic pricing (41%).

However, confidence grows rapidly among those further along the maturity curve: 71% of CFOs who describe their organizations as fully AI-ready say the technology can meaningfully support growth forecasting.

Finance teams face structural barriers to scaling AI, with 61% citing poor data quality, 51% struggling to clearly articulate the benefits of AI, and 50% reporting insufficient skills or ability to fully utilize the technology.

leadership challenges

The survey also highlights talent pool challenges within finance organisations. Nearly 38% of CFOs say they are evolving faster than their broader finance leadership teams, and 68% of CFOs say they need new leadership styles and skills to remain effective.

Only 12% of CFOs say the results of their transformation exceeded expectations. Organizations with highly adaptable teams are three times more likely to achieve successful change outcomes, so leaders who foster a culture of adaptability and continuous learning are more likely to achieve differentiated results.

“For financial leaders, one of the key questions is: What is the right balance between specialist and generalist roles?” Corson said.

In the current high-tech environment of constant change, generalists with extensive experience are becoming increasingly important.

“Finance leaders need to assess how to continually develop broader skills, whether through rotations or other structured programs that also include opportunities to develop collaboration skills across functions,” Corson said. “Future finance leaders will need to be more than just strong technicians: They will need to demonstrate the skills of a well-rounded enterprise leader—financial discipline, strategic thinking, technical fluency and the ability to lead change.”

Contact the author: anoto@gfmag.com