CFOs lag on the AI curve, risking the growth and value creation they want, EY warns.
CFOs are sitting on a goldmine of tech potential—but most aren’t ready to dig in. That’s the major takeaway from a new Ernst & Young survey titled the DNA of the CFO.
Finance chiefs want to make investment decisions and create value. Yet, the majority of these bosses remain constrained by skills gaps, limited AI readiness and outdated measurement frameworks.
The London-based accounting firm sourced responses from more than 1,600 CFOs and senior finance leaders across 28 countries and 22 industries. The consensus shows a widening gap between CFO ambition and actually getting the job done.
“While CFO ambitions are clear, there’s quite a gap when it comes to execution,” Myles Corson, EY Global Strategy and Markets Leader for Financial Accounting Advisory Services, told Global Finance.
Consider the numbers: 60% of CFOs wish to lead on value creation, but only about a quarter currently guide value-creation discussions or make key investment decisions.
Another finding from the EY CFO survey reinforces that disconnect: Only 27% of respondents say their organizations view finance as a key partner in value creation.
“Organizations that treat finance as a key partner have a common trait: their finance functions demonstrate insight beyond the ‘comfort zone’ of financial performance,” Corson said. “They are also more actively involved in decisions—and it’s this that builds their reputation as valuable business partners.”
AI: What Must Change
A majority of respondents (68%) also say the definition of enterprise value needs to change. This reflects frustration with traditional metrics that fail to capture newer sources of growth. Nearly half (49%) say conventional measurement tools cannot adequately reflect value created by technology, data and long-term investments, while half (50%) cite difficulty in demonstrating upfront returns on investment.
The report also points to significant barriers in AI adoption across finance functions. Only 21% of CFOs say their organization’s AI readiness is “leading” or “advanced,” while fewer than 15% describe their teams as highly adaptable or confident using new technologies. Less than half of CFOs see strong AI potential in areas such as data analysis (49%), growth forecasting (45%), and dynamic pricing (41%).
However, confidence rises sharply among those further along the maturity curve: 71% of CFOs who describe their organizations as fully AI-ready say the technology can meaningfully support growth forecasting.
Finance teams continue to face structural hurdles in scaling AI, with 61% citing poor data quality, 51% struggling to articulate AI’s benefits clearly, and 50% reporting insufficient skills or capacity to use the technology fully.
Leadership Challenges
The survey also highlights talent pool challenges within finance organizations. About 38% of CFOs say they are evolving faster than their wider finance leadership teams, and 68% of CFOs say they require new leadership styles and skills to remain effective.
Just 12% of CFOs say their transformation outcomes exceeded expectations. Organizations with highly adaptable teams are three times more likely to achieve successful transformation outcomes, so leaders who foster a culture of adaptability and continuous learning are more likely to drive differentiated outcomes.
“For finance leaders, one of the key questions is: What is the right balance between specialist and generalist roles?” Corson said.
In the current high-tech environment of continuous change, generalists with broad experience are increasingly important.
“Finance leaders need to assess how to consistently develop broader skills, whether through rotations or other structured programs, including the opportunity to develop collaboration skills across functions,” Corson added. “Future finance leaders will need to be more than simply stronger technicians: they will need to demonstrate the skills of a complete enterprise leader—financial discipline, strategic thinking, technological fluency, and the ability to lead change.”
Contact the author: anoto@gfmag.com