Transforming Finance: Insights into the Future of Digital Transformation by 2026
In the rapidly evolving landscape of finance, technology plays a critical role in reshaping how organizations operate. From expediting financial closes to automating routine tasks, the finance function is on the brink of a technological renaissance. Experts from the finance sector are optimistic about the potential of digital transformation, particularly in the realm of artificial intelligence (AI). Discussions with finance executives shed light on the anticipated changes by 2026, emphasizing not only the technologies that will emerge but also the strategic implications for finance teams.
The Promise of AI in Finance
Siqi Chen, CEO and CFO of Runway, highlights the growing traction of AI in domains like customer support and writing, noting a significant opportunity for finance to catch up. Historically, finance has lagged in adopting AI, but this is set to change. "Software will finally match the capabilities of AI models," Chen states. As forecasting and variance analysis become more automated, finance professionals will notice a substantial decrease in the effort needed for these tasks. This shift isn’t just about reducing hours; it’s about re-architecting workflows to gain more time for high-level strategic thinking, ultimately allowing finance teams to provide greater value.
Security and Efficiency Through Automation
Karen Walker, CFO of Sysdig, emphasizes the importance of governance in AI implementation. She argues that data automation, when aligned with security protocols, can drive operational efficiency while minimizing risks. The goal isn’t merely to leverage new tools but to ensure a disciplined approach that encompasses enablement, measurable outcomes, and cross-functional collaboration. Walker’s perspective underscores the notion that finances can be streamlined significantly without compromising security, paving the way for faster decision-making.
Re-engineering the Financial Planning Process
Tony Jarjoura, CFO of Gigamon, shares his experience with deploying AI-powered tools to transform financial planning and analysis (FP&A). By integrating AI systems that directly reference data from ERP systems, his team has drastically reduced the time spent reconciling data—from 100 hours to just 2. This transformation highlights how automation not only streamlines processes but also reallocates hours previously wasted on manual tasks into strategic initiatives. Jarjoura’s insights suggest that the real benefit of AI lies in its ability to enable finance professionals to focus on delivering higher-value contributions.
Tackling the Data Crisis
Looking ahead, Junko Swain, CAO of Workiva, warns about the looming "data crisis" that finance and accounting leaders will face by 2026. Many organizations still contend with fragmented data systems, which can undermine the effectiveness of AI deployments. Swain suggests that finance teams should prioritize creating a “single source of truth” for both financial and non-financial data. This move towards centralization is not just a technical necessity; it’s crucial for effective governance and risk management. Without a solid data foundation, Swain warns that efforts to implement AI could result in errors that are more efficient but ultimately flawed.
Real-Time Insights as the New Standard
Sarah-Jayne Martin, senior director of global financial automation solutions at Quadient, provides insights into the next evolution of digital transformation. Companies that have begun their automation journeys will transition towards leveraging real-time intelligence and insights. This requires a comprehensive view of the finance function, integrating treasury, compliance, and accounting seamlessly. By 2026, the expectation is that real-time forecasting will not only inform decision-making but will also be an essential tool for CFOs striving to balance financial agility with strategic vision.
The Evolving Role of Auditors
Thomas Mackenzie, KPMG’s chief digital officer, emphasizes the increasing importance of auditors in the age of AI. As organizations strive to make their AI systems trustworthy, independent assurance and robust control testing become essential. Auditors are tasked with building trust in AI systems, which allows companies to innovate confidently. This dynamic indicates that as finance strategizes its digital transformation, the role of oversight will be paramount in ensuring that ethical considerations remain front and center.
The financial sector’s digital transformation journey is on an accelerated path, with AI and automation positioned to redefine traditional finance roles. As organizations leverage these technologies, the focus will not only be on operational efficiency but also on building a framework that fosters trust, governance, and strategic insight, all crucial for navigating the complexities of modern finance.
