Generative AI is becoming a major issue, with 44% of financial services at publicly traded organizations using the technology
MENLO PARK, California, September 10, 2024 /PRNewswire/ — The pressure of new cybersecurity disclosure requirements and growing threats of cyberwarfare and extortion have propelled data security and privacy to the top of financial executives’ priorities. Global Finance Trends Survey A study by consulting firm Protiviti found that 61% of CFOs and finance leaders consider data security and privacy a top priority for the coming year, followed by financial planning and profitability analysis and strategic planning.
The finance function is increasingly responding to stakeholder demands for non-financial, structured and unstructured data. Coupled with the growing need for sophisticated controls, accuracy assurance and compliance to protect this data, there is a shift in the role of CFOs, who must increase their responsibilities for data governance and ensuring appropriate investments in cybersecurity capabilities. The survey also found that generative AI is now used by one in three finance organizations, with process automation and financial forecasting representing the most common uses of the technology.
“In previous survey years, many would have raised eyebrows at CFOs and CISOs partnering on data security and privacy issues because those issues would have been the CISOs’ purview,” said Christopher WrightProtiviti’s global leader in business performance improvement solutions. “Now, new cybersecurity disclosure and reporting requirements, along with increasing customer and supplier expectations for enterprise data privacy and security, also require the CFO to be in the driver’s seat to stay compliant and maintain high standards of data governance.”
Generative AI Advances in the Financial Sector
CFOs and other finance leaders are working to advance generative AI deployments that can support revenue growth and improved profitability. The survey found that among financial organizations that are using generative AI (34% of all respondents), 58% have made significant, measurable progress in their cost optimization efforts. Additionally, 44% of public organizations are using generative AI in finance, while only 29% of private organizations are doing the same.
“Generative AI has immediate benefits for finance organizations, particularly in terms of process automation and financial forecasting,” Wright said. “CFOs and finance leaders are using AI tools to generate valuable insights in budgeting, forecasting, cash flow management and cost optimization. The Finance Trends survey highlights that finance functions are using AI to help them process large pools of data efficiently. This is especially crucial in a function that is so data-rich and where it is imperative to process both structured and unstructured data.”
Financial planning and analysis (FP&A) is the second priority
Effective profitability planning and analysis practices have become essential for businesses as they continue to deliver on their mandate to create value and optimize costs. The findings indicate that 69% of public sector financial executives and professionals view financial planning and profitability analysis and reporting as a top priority for the coming year.
A majority of CFOs and finance leaders (57%) say they have made significant and measurable progress in cost optimization, both through technology streamlining and the use of cloud-based systems.
ESG reporting also remains a priority for financial leaders, with 59% of publicly traded organizations reporting a high level of ESG reporting readiness, compared to 47% of private organizations.
Top 10 Priorities
In an online survey conducted in the second and third quarters of 2024 among more than 950 global financial leaders, including CFOs, vice presidents, directors and managers, respondents ranked their priorities for the coming year. The results indicate that the top 10 financial priorities are:
|
2024 Ranking |
2023 Ranking |
|
|
1 |
Data Security and Privacy |
5 |
|
2 |
Financial planning, profitability analysis and reporting |
N / A |
|
3 |
Strategic planning |
6 |
|
4 |
Routine reporting and closing activities |
10 |
|
5 |
Process improvement |
11 |
|
6 |
Leadership (within your organization) |
23 |
|
7 |
Improved data analysis |
7 |
|
8 |
Cloud-based applications |
9 |
|
9 |
ESG indicators and measures |
1 |
|
10 |
Changing demands and expectations of internal customers |
15 |
|
*In this year’s survey, we consolidated and reduced the number of financial areas assessed by respondents from 24 to 15. |
Available Investigation Resources
Key findings from the Protiviti 2024 Financial Trends Survey are available here for digital exploration on the company’s website. The site also offers a free download of the full survey report in PDF format, including recommended actions for CFOs and an infographic. September 24 And October 24Protiviti will host two free 60-minute webinars to discuss the survey results and their implications. To attend the webinars, register here.
About Protiviti
Proactivity (www.protiviti.com) is a global consulting firm that delivers deep expertise, objective insights, a tailored approach and unmatched collaboration to help leaders face the future with confidence. Protiviti and its independent, local member firms provide clients with consulting and managed solutions in finance, technology, operations, data, digital, legal, human resources, risk and internal audit through a network of more than 90 offices in over 25 countries.
Appointed to the Fortune 100: The Best Companies to Work For® list For the 10th consecutive year, Protiviti has served more than 80 percent of Fortune 100 and nearly 80 percent of the Fortune 500 companies. The firm also works with government agencies and smaller and growing companies, including those seeking to go public. Protiviti is a wholly owned subsidiary of Robert Half (NYSE: RHI).
SOURCE Protiviti
