Financial executives are navigating a landscape marked by economic uncertainty and market volatility as they prepare for 2025, according to a report recently released by Financial Executives International's Financial Education & Research Foundation. The survey, which involved 326 FEI members, identified that 35% of respondents consider mitigating economic uncertainty and global market fluctuations as their principal challenge for the year ahead.
In the face of these challenges, over half of the survey participants (51%) indicated that their primary financial priority lies in revenue growth and market expansion. Other significant concerns include cost management and optimisation (23%), alongside strengthening liquidity and cash flow management (14%). "Financial executives spent 2024 building the fundamentals for what is to come," stated Andrej Suskavcevic, president and CEO of FEI and FERF. He further described the 2024 landscape as complex, involving economic and market disruptions that tested resilience and innovation.
The report highlights a keen focus among financial leaders on attracting the right blend of personnel and resources to meet ambitious growth objectives. A substantial proportion of respondents, nearly three-fourths (73%), placed a high priority on acquiring financial planning and analysis skills, while 59% are looking to enhance their expertise in data management, technology, and AI. Furthermore, 60% of respondents cited attracting and retaining qualified personnel as a top priority, with over half (56%) intending to match wage increases with, or to exceed, inflation rates to mitigate turnover. Additionally, 45% plan to scale their headcount substantially.
"Addressing uncertainty, especially across global markets, will clearly be the primary focus for financial executives in the year ahead," noted Anthony Reggiannini, partner for CFO and business consulting services with Forvis Mazars, who sponsored the report. He highlighted that leaders are prepared to invest more heavily in technology and talent to ensure their organisations possess the necessary capabilities and skills to foster growth, irrespective of the uncertainties that 2025 may present.
Amid these strategies, many leaders are turning towards advanced technology, specifically AI and digital tools, to gain deeper insights, optimize processes, and enhance agility in decision-making. However, the adoption of AI is accompanied by reservations, as over one-third (38%) of respondents expressed uncertainty about its application, identifying a lack of clear strategies. Moreover, cybersecurity remains a pressing concern, with 28% of respondents categorising it as a significant hurdle for financial operations, while half of those surveyed indicated they were "somewhat concerned" about potential risks associated with cybersecurity.
In a related report, AI has been characterised as “business critical” for organisations across Australia and New Zealand, according to a study from iMedia Summits in collaboration with Honeycomb Strategy. The findings of the 2024 Industry Trends and Attitudes report, released today, illustrate a comprehensive analysis of factors set to shape the retail, ecommerce, and marketing sectors in the coming years.
The insights reveal that half of the surveyed organisations plan to concentrate on employing AI for automation in 2025. Advanced analytics and the integration of generative AI are projected to be pivotal for these organisations, as eight in ten intend to enhance their customer and user experience.
Despite ongoing concerns regarding the long-term implications of AI, a striking 90% of respondents felt that technological advancements would not jeopardize their job security. Renata Freund, founder of Honeycomb Strategy, commented on the prevalent focus on understanding the practical applications of AI, indicating that executive leaders exhibit a commitment to harnessing this transformative technology. "The emphasis now is on gaining a strategic understanding of AI’s practical applications," Freund remarked.
Helena Stylman, managing director of Comexposium ANZ, further attested to the value of the report, asserting that it empowers organisations to adapt, innovate, and thrive amid competitive market conditions.
Both reports underscore a broader trend across various sectors as businesses increasingly regard AI not just as a tool for efficiency but as a crucial component for strategic growth and resilience in the face of current and future market challenges.
Source: Noah Wire Services