Research highlights C-suite and Finance and
Accounting expectations and concerns around the adoption of
Generative AI and other emerging technologies
LOS
ANGELES and LONDON and
SYDNEY and SINGAPORE ,
Dec. 6,
2023 /CNW/ -- C-suite and finance and accounting
(F&A) leaders around the world believe the modern business has
to embrace new technologies like AI to streamline their financial
operations, though many admit they may lack the requisite talent to
execute on it, according to a survey commissioned by digital
finance transformation leader BlackLine, Inc. (Nasdaq: BL).
An overwhelming majority of respondents said that cloud
computing (80%), generative AI (78%), and new kinds of AI (76%) are
essential for improving business resiliency in the face of future
disruption. However, the current shortage of skills in F&A
could be exacerbated by a lack of skills in these new technologies,
putting further strain on the skills gap. A third of those surveyed
(34%) identified the ability to use new technology or software as a
key skill needed to help their company remain agile in the face of
disruptive events, yet more than a quarter (28%) said not having
the right skills on their F&A team today or the ability to
develop them would be a problem for the adoption of AI and other
new technologies.
The survey, conducted recently by independent research agency
Censuswide, asked 1,339 C-suite and F&A professionals around
the world (US, Canada, UK,
France, Germany, Australia, and Singapore) about their views on emerging
technologies and their potential impact on F&A and businesses
more broadly.
Therese Tucker, co-CEO of
BlackLine, said: "Financial automation technology is now a
necessity for F&A departments, and businesses are excited and
optimistic about how technology like AI can further streamline
processes and augment existing systems. While there is
understandable apprehension in the adoption of emerging
technologies, therein also lies a valuable opportunity for F&A
leaders to enable the upskilling of their teams through
automation."
"Business leaders must continue to proactively embrace available
technologies to reduce time spent on manual tasks, cut down on
errors in financial data, and provide visibility that will help
them make faster, smarter, and more informed decisions."
When asked specifically about how AI could positively impact
their industry, C-suite and F&A professionals highlighted five
key benefits:
- Enhanced audit capabilities, which would improve the
identification of patterns and detection of potential
fraud or errors
- The ability to process large volumes of financial data at high
speed, which will lead to more insightful analysis
- Automation of repetitive tasks, which will improve accuracy and
reduce errors
- The ability to analyze large sets of financial data to identify
compliance gaps
- Improved analysis of historical financial data to help improve
forecasting capabilities
However, while the overall response to AI technology was
positive, some variations were observed among regions. US
respondents displayed the highest confidence, with 91% believing
that AI could effectively prepare F&A departments for
disruption. In contrast, confidence among European respondents was
lower, with percentages ranging from 72% in the UK to 57% in
Germany.
Hurdles remain
Respondents also recognized the hurdles the F&A industry
will need to overcome to adopt AI technology effectively. The most
commonly identified of which is training AI models to understand
and interpret complex financial data accurately. Trusting the
outputs of AI and ensuring robust governance frameworks to stop the
potential misuse of AI, were also key concerns.
Bridging the skills gap
As businesses explore how they can harness these technologies,
most concede that they lack sufficient expertise in these areas.
62% said their organization does not have enough team members with
deep technical knowledge to identify and resolve complex accounting
issues. Additionally, bringing these skills into F&A
departments is proving particularly difficult. Nearly two-thirds
(64%) struggle to recruit and retain enough skilled F&A
employees to fulfill internal control responsibilities. Only around
a third of respondents said their F&A department currently has
sufficient skills when it comes to strategic thinking (35%) and the
ability to analyze data (34%). Even fewer (29%) feel they currently
have the skills to be able to use new technology or software.
Mike Polaha, SVP of finance
solutions and technology, BlackLine, said:
"Technology can provide some relief in helping to create an
environment where accountants are not spending all day in
spreadsheets, booking journal entries, and reconciling accounts.
The more automation a company can provide, the greater the
elimination of mundane tasks for F&A team members. This will go
a long way to improving perceptions of the industry and, in turn,
can create more exciting and challenging roles for new and existing
talent alike."
"As the business landscape becomes increasingly complex,
organizations with skill-ready F&A teams will possess a
competitive advantage. Those fluent in the use of emerging data,
analytics, and AI modeling technologies will be able to
garner business insights that can better serve broader
organizational functions, such as Sales, HR, and IT, helping them
to seize opportunities and evade potential disruptions. These
teams will not only be better equipped to navigate the future but
will also drive innovation and efficiency in day-to-day operations.
Now is the time for F&A leaders to build the skill-set of their
existing workforce to future-proof their operations and strengthen
their organization's resilience."
For an infographic with more survey highlights, go here.
Survey Methodology/Notes for Editors
The research was
conducted online by Censuswide, surveying 660 C-level and 679
F&A professionals in seven markets (US, Canada, UK, France, Germany, Australia, and Singapore), with minimum annual revenues as
follows:
- US: 150m USD
- Canada: 50m CAD
- UK: 50m GBP
- France: 50m EURO
- Germany: 50m EURO
- Australia: 20m AUD
- Singapore: 20m SGD
About BlackLine
Companies come to BlackLine (Nasdaq: BL) because their traditional
manual accounting and finance processes are not sustainable.
BlackLine's market-leading cloud platform and customer service help
companies move to modern accounting by unifying their data and
processes, automating repetitive work, and driving accountability
through visibility. BlackLine provides solutions to manage and
automate financial close and consolidation, accounts receivable,
and intercompany accounting processes – inspiring, powering, and
guiding large enterprises and midsize businesses on their digital
finance transformation journeys.
More than 4,300 customers trust BlackLine to help them close
faster with complete and accurate results. The company is the
pioneer of the cloud financial close market and is recognized as
the leader by customers at leading end-user review sites including
G2 and TrustRadius. BlackLine is a global company with operations
in major business centers including Los
Angeles, New York, the San
Francisco Bay area, London,
Paris, Frankfurt, Tokyo, Singapore, and Sydney. For more information, visit
blackline.com.
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SOURCE BlackLine