According to a survey conducted by Grant Thornton LLP, CFOs remain focused on achieving profitability despite uncertainties in the global economy and interest rate outlook. The survey reveals that 76% of CFOs predict net profit growth, with more than half expecting their organizations to grow profits by more than 5%. Supply chain challenges remain a top concern, with only 45% of CFOs confident in meeting their supply chain needs. However, CFOs are increasingly turning to technology, with 88% already using or exploring the use of generative AI to address various challenges, including supply chain management. Additionally, 70% of CFOs plan to implement AI in their finance processes within the next year.
The survey highlights the growing importance of technology in finance departments. CFOs are recognizing the potential of advanced technology, such as AI, distributed ledger technology, machine learning, optical character recognition, and robotic process automation. They believe these technologies will drive cost savings and profits, and at least 70% of CFOs plan to implement them in the future. Technology upgrades come with added costs, and CFOs acknowledge that they will need to invest in efficient and effective technologies with a high return on investment. As a result, 58% of finance leaders expect to increase their spending on IT/digital transformation.
Cost optimization continues to be a priority for CFOs, with vendor or supplier costs identified as the top area for potential cost cuts. However, CFOs are also facing challenges in identifying opportunities for cost savings, as 47% expect their operations costs to increase. Workforce rationalization and potential layoffs have emerged as focus areas for cost reduction. Finance automation is also driving more timely predictions, with 36% of CFOs altering their forecasts at least weekly. The increased use of advanced technology in finance departments enables faster strategic shifts and helps finance teams spend more time on data interpretation rather than manual number crunching.
Overall, CFOs demonstrate confidence in their forecasting functions’ capabilities and believe that the insights provided by FP&A are valuable in making data-driven decisions. The survey suggests that CFOs have emerged stronger in navigating challenges and are well-equipped to leverage advanced technologies to drive profitability.
