AI Disruption in Finance: Bridging the Skills Gap
Finance professionals anticipate that artificial intelligence (AI) will significantly reshape their industry within the next two years. However, a substantial number feel inadequately prepared to exploit the full potential of these transformative tools.
The Rising Importance of AI Skills
According to the Future-Ready Finance: Survey Report on Technology, Productivity and Skills by AICPA and CIMA, a clear disparity exists between the optimistic expectations of finance professionals regarding AI and their organizations’ readiness to adopt these technologies. Notably, 56% of respondents identified generative AI as the primary skills gap for their organization heading into 2025. Moreover, IT and technology skills were highlighted as a critical concern for 47% of participants this year, reflecting a marked increase from just 20% in 2021.
A Shift Towards Advanced Technologies
This shift emphasizes the need to leverage advanced technologies not merely as operational support but as a means to enhance value and efficiency within organizations. However, despite recognizing the importance of AI, a staggering 88% of finance professionals foresee AI as the most transformative trend in their field over the next 12 to 24 months. Yet, only 8% believe their organization is “very well prepared” to manage this impending change.
Barriers to Technology Adoption
The survey conducted among over 1,400 finance and accounting leaders globally revealed that a lack of skilled personnel is the predominant barrier to technology adoption (50%). Other significant concerns included safety and security apprehensions (47%) and uncertainty regarding the maturity of technology (42%). These challenges highlight the urgent need for enhanced training and development within the finance sector.
Internal Training and Upskilling Strategies
To address existing skills gaps, organizations are prioritizing internal training programs (62%) over external training initiatives (45%) and the hiring of new talent (35%). Notably, on-the-job training emerged as the most effective method for skill enhancement, valued by 61% of finance professionals. Internal training offers flexibility and adaptability, often evolving through practical experimentation. However, hiring new talent can serve as a crucial, albeit reactive, strategy to spur innovation, especially when internal resources are strained.
Addressing Broader Skills Shortages
Beyond AI, the survey highlights that technology skills related to big data, cloud computing, and the Internet of Things are concerning for 37% of finance professionals. Additionally, weaknesses in communication, critical thinking, and business partnerships persist, affecting 33% and 32% of respondents, respectively. These broader skills shortages necessitate a more comprehensive approach to training within finance teams.
Learning Preferences and Skills Development
The findings reveal that organizations need to consider learning preferences when formulating skills development strategies. The emphasis on in-house training combined with a strong preference for on-the-job learning indicates a clear path forward. Strategic investments should focus on creating practical, accessible, and ongoing skills development programs that can effectively close the readiness gap, thereby unlocking significant productivity gains.
In conclusion, while finance professionals recognize the transformative potential of AI, addressing the skills gap and enhancing training initiatives will be critical for organizations aiming to navigate this technological revolution successfully.
For comments or article suggestions, reach out to Steph Brown at Stéphanie.Brown@aicpa-cima.com.