CFOs are now tasked with playing a bigger role in driving value creation and investment decisions – but many still lack the skills, influence and AI readiness to lead effectively, according to a recent EY survey.
Based on insights from more than 1,600 CFOs and senior finance leaders globally, EY Global DNA of the CFO Survey explores how the CFO role is evolving as organisations navigate increasing complexity and growing expectations around value creation, investment decisions and AI adoption. The findings show a widening gap between CFO ambition and execution.
Here are some of the key findings.
Value creation mismatch
Most (60%) of the CFOs surveyed say they want to lead on value creation, but only 26% lead value-creation discussions and 25% lead vital investment decisions. Only 27% say that their organisations view finance as a key partner in value creation, indicating that perceptions of the finance function have yet to catch up with its expanding responsibilities.
AI’s role in value creation
The rapid evolution of AI is creating the potential to automate existing finance processes and reduce costs in ways that were not previously achievable, the report says. However, most finance functions are not yet ready to harness the full potential of AI.
Concerns about data quality and bias could be slowing down AI adoption.
Those businesses that are AI-ready see the following areas of potential for the technology.
Collaboration challenges
The report flags the importance of a close working relationship with the rest of the business. ‘It can help the finance team to understand business challenges and the business to understand how finance can support them,’ it says. ‘Finance should also work alongside the business to oversee its large-scale investments in new technologies.’ However, cross-function collaboration remains limited.
Mindset, skills and leadership
More than two-thirds (67%) of CFOs surveyed say they should be actively challenged to break out of their comfort zones and embrace digital, strategic and people leadership; 68% say that to remain effective, they should develop new skills and leadership styles, and not just rely on past experience or expertise.
Time constraints could be limiting development opportunities for CFOs.
Key recommendations
The report recommends the following actions for CFOs going forward.
- Strengthen ownership and direction. Take a more active role in leading value creation by strengthening value measurement and increasing involvement in high-uncertainty investment decisions, rather than remaining reactive.
- Build momentum in capabilities and shift focus. Build AI readiness by strengthening data foundations, investing in skills and shifting from defensive-use cases to strategic, growth-focused applications; elevate people and culture as core leadership priorities to ensure technology investment translates into results.
- Implement change across the finance function. Embed adaptability, collaboration and confidence with new technologies into everyday ways of working; accelerate leadership development to close capability gaps, strengthen succession pipelines and support more strategic decision-making; redesign finance roles and operating models to reduce operational burden and free up time for insight, decision support and value creation.
‘Ultimately, the CFO’s impact is likely to depend on how clearly they align technology, talent and capability development with the enterprise’s strategy and vision,’ the report finishes, ‘and how consistently they model and reinforce the mindsets that enable teams to perform, adapt and create value.’
More information
See the ACCA/BDO report on how the role of the CFO is evolving beyond finance to include reporting on the value-centric aspects of operations
