EY study reveals gap between CFOs’ plans and their implementation
In Cyprus, Cyprus Mail reported on a global EY study that identified a gap between chief financial officers’ aspirations to influence business value creation and their actual involvement in key decisions. The survey covered more than 1,600 CFOs and senior finance executives and was supplemented by in-depth interviews.
According to EY, the future of the finance function will depend not only on professionals or technology, but on CFOs’ ability to combine them to create value amid rapid change and uncertainty. The potential of technology, including artificial intelligence, depends on the right mindset, skills and tools within finance teams.
Gap between expectations and decisions
Sixty percent of respondents believe CFOs should define and shape value creation. At the same time, fewer than 26% said they lead discussions on the key drivers of business value.
Only 25% of respondents said they lead investment decisions when the expected return is uncertain. EY linked this to limitations in leaders’ confidence, accountability and practical decision-making. The company warned that under such conditions, finance functions may remain reactive rather than play a leading role in defining enterprise value.
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AI and team development
Sixty-eight percent of CFOs said there is an urgent need to revise enterprise value assessment metrics. At the same time, half of respondents reported that they cannot effectively measure the value created by new technologies, roles and ways of working.
Only 21% of survey participants rated their organizations’ readiness for artificial intelligence as leading or advanced. Most CFOs focus on defensive AI applications, including fraud detection and risk assessment, while fewer than half use the technology for forecasting or pricing.
New skills and leadership styles are needed by 68% of respondents, yet people and culture development ranked only sixth among priorities. Fewer than 15% of CFOs consider their teams highly adaptable, proactive in learning or confident in working with new technologies. Additionally, 38% of respondents said their organizations are changing faster than their leadership teams.
