‘Majority moves’ in tech: Finance leaders reveal popular practices

A large majority of finance leaders have been tasked with new responsibilities in 2024. Not surprisingly, many of those responsibilities revolve around technology.

What strategic moves are the majority of leaders making, and what is motivating those moves?

A recent survey of 500 finance leaders conducted by payment solution company AvidXchange found that 87% have taken on new responsibilities in 2024, and the top two areas added involve technology. Forty-nine percent reported adding data analytics and reporting to their to-do list over the past two years. Another 47% have added financial technology integration.

With 82% of leaders saying their finance departments are currently using AI or plan to in 2025, the wisdom of that crowd can provide food for thought for finance leaders in transition.

1. Artificial intelligence as a staffing solution?

Two-thirds of survey respondents reported that staff shortages have impacted their finance department in 2024.

In a couple of different ways, AI appears to be coming to the rescue.

Seventy-seven percent said their finance departments have invested in AI and automation to address staff concerns. In addition, the majority are turning to their current staff to help build solutions.

Two-thirds of finance leaders said they’re offering AI training to their staff. Half of the survey respondents are taking it a step further, offering upskilling and reskilling opportunities to employees.

Experts at Gartner recently predicted that while 90% of organizations will use some form of finance AI by 2026, less than 10% will have headcount reductions as a result.

2. Automation nation

Using AI to enable previously unattainable levels of automation is a key capability that the majority of finance leaders have in their toolbelt.

Sixty-four percent of finance leaders reported that their organizations are currently using finance automation technology, and an additional 17% expect to use such technology in 2025.

Fifty-five percent said that automating workflows in the finance department is a top priority, most often to increase efficiency and productivity (60%) and to improve compliance and accuracy (52%).

3. Tech solutions require security solutions

With great tech comes great responsibility.

More than three-quarters of finance leaders said their departments have been victims in 2024 of security attacks, including check fraud (63%), deepfakes and other impersonations (62%), and phishing and other cyberattacks (61%).

The majority move? It’s pretty obvious, but 65% of finance leaders said their companies have strengthened security measures this calendar year.

4. Other uses of technology

More finance leaders are taking time to figure out how AI can save time and money. The survey found that the majority of the leaders’ organizations:

• View the continued adoption of cloud solutions as valuable (76%). Forty-seven percent consider it critical to company success.

• Have turned to electronic, real-time payments. Sixty-one percent are exclusively or mostly using virtual credit cards or bank transfers for transactions; just 6% aren’t using such technologies at all.

• View how they collaborate with suppliers to be a key part of their business strategy (52%), although a majority (63%) don’t feel their organizations are very effective at collaborating with suppliers to enhance financial processes. Nearly half (44%) report that they have fully adopted a real-time payment system with suppliers.

— To comment on this article or to suggest an idea for another article, contact Bryan Strickland at Bryan.Strickland@aicpa-cima.com.