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The accounting profession, traditionally a proving ground for CFO talent, is grappling with technological disruption alongside challenges such as work-life balance and labor shortages. According to Rightworks’ 2024 Accounting Technology Survey, a significant majority of accounting firms are slow to adopt artificial intelligence (AI) and cloud computing, citing concerns about knowledge gaps, data privacy, and budget constraints.
The survey reveals that nearly three-quarters (73%) of accounting firm leaders have yet to incorporate AI into their operations. Furthermore, 65% expressed discomfort with adopting AI, often due to limited knowledge of the technology—69% admitted to being only slightly or not at all knowledgeable about AI. Among the few organizations that have ventured into AI, only 4% report using it extensively, while 35% have no plans to implement it in the future. Key concerns cited include potential inaccuracies (58%) and data privacy risks (55%), while only 14% mentioned usability challenges.
Cloud computing, another cornerstone of digital transformation, is acknowledged for its benefits such as enhanced efficiency and flexible work arrangements. However, adoption remains hindered by technical and financial barriers, with 44% of respondents blaming a lack of expertise and resources, and 43% pointing to budgetary limitations. Leadership challenges also play a role, as 29% noted confusion about product choices and 28% identified internal resistance to new technologies as obstacles to progress.
These technological struggles have broader implications for client collaboration, a critical area for accounting firms. More than a third (34%) of respondents identified client collaboration as a key weakness in their technological environment, second only to application performance and cybersecurity. Collaborative leaders within firms are scarce, with only 40% identifying as active collaborators or leaders, though this capability is linked to a potential 39% revenue increase per employee.
The findings underscore the need for accounting firms to enhance their understanding of emerging technologies like AI and cloud computing and address internal resistance to digital transformation. As firms navigate these challenges, fostering leadership and collaboration will be pivotal in realizing the efficiency and service improvements these tools can deliver.
Source: https://www.cfo.com/news/accounting-artificial-intelligence-rightworks/713416/
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